INTEGRATED REPORT2024

SENSHU ELECTRIC ＧＲＯＵＰCORPORATE PHILOSOPHY
We create new value,demonstrate ability,
strive to develop our business,
contribute to society,reward shareholders,provide benefits for our employees

CORPORATE STATEMENT
Affinity, Integrity, ProgressTable of Contents
Top Message

04

Value Creation Story
History

06

Long-term Vision

08

Value Creation Process

12

Business Development
Medium-term Management Plan
Overview and Progress
Business Strategy

13

Topics19

Financial Data
Consolidated Financial Data

55

Consolidated Balance Sheet

57

Consolidated Statements of Cash Flow
59

Company Information
Business Location

60

Subsidiary61

Stock and Shareholder

63

Applicable period
Sustainability
Sustainability Management

22

Environment (E)24Society (S)33

Supplier/Customer
Employee
Shareholder and Investor
Community

Governance (G)45

Corporate GovernanceRisk Management
Compliance
Message from Outside Directors
Board Member

11.18 is Electric Wire & Cable Day
November 18, the anniversary of ourcompany's founding, has been designated as"Electric Wire & Cable Day" by the Japan
Electric Wire & Cable Makers' Association.
(2018)We feel a "connection" with electric wire
& Cable.

October Term 2023
November 1, 2022 to October 31,
2023
Note : For some parts, the data as
at end of March 2023 is indicated.
Referenced Guidelines
International Integrated Reporting
Council (IIRC)「International Integrated Reporting
Framework」
Ministry of Economy, Trade andIndustry「Integrated Disclosure and Dialogue
Guidance 2.0 for Value Creation」

Concerning the outlook
This document describes the future
outlook, plans, and strategies of ourgroup, but please be aware that various
factors may cause results to differ fromthese information, or plans may bechanged.
This publication is also available on our
website.
https://www.senden.co.jp/en/

03Top Message

I would like to express my deepest condolences for the many precious
lives lost in the Noto Peninsula Earthquake of 1st January 2024.
I would also like to express my heartfelt sympathy to those affected by
the disaster. We sincerely hope for the earliest possible recovery.
This time, we have published our first Integrated Report.
This report has been produced by our staff with the warmest wishes sothat all stakeholders can see the past, present and future of the Group.
We look forward to receiving your comments and opinions.

Top Message of Mr. Motohide Nishimura,

Representative Director and Presidentof SENSHU ELECTRIC CO., LTD., JAPAN

About Myself
It has been 24 years since I took over from the previous President, who is also my father, in January 2000. I was 45 years
old when I became the president, and now I am 68 years old. I joined the company in 1995, when I left my previous job
at Okasan Securities Co., Ltd. During the term at the securities company, I worked mainly in the International Department
and was stationed in four countries for a total period of 13 years, where I sold Japanese stocks and bonds to local
investors. The period from 1982 to 1995, when I was overseas, was the "Japan as number one" era, when investment inJapan was at its peak. Then the bubble burst and we entered into the lost 20 years. I still remember being told by one of
my clients in Switzerland, my last place of the work, that "Japanese people don't know the fear of deflation”. I also learnt
that “it is important to manage the company in a way that is acceptable to all stakeholders”. I joined the company in thehope that I could make use of this experience in the development of the company.

Senshu Electric Co., Ltd. To Date
Our company was founded in November 1949 by my father, Tadao Nishimura, with his three brothers, and from an earlystage we concentrated on the sale of electric wire and cable and expanded our business nationwide with a 'just-in-time'
approach. Around 30 years after its founding, the company aimed to go public in order to move away from being a
traditional private trader, and in June 1991 it was listed on the New 2nd Section of the then Osaka Securities Exchange.

Since then, the company has been steadily promoted to the OSE 2nd Section, TSE 2nd Section and TSE 1st Section, andon 4th April 2022 it moved to the TSE Prime Market. The driving force behind this is our original product, FA cables. Since
the late 1980s, the Company has been developing the market for FA cables in anticipation of the increasing efficiency
improvement and automation of manufacturing facilities. We have also strengthened our cable assembly operations tomeet customer’s demand and requirements. In the process, we have introduced and nurtured new products in the market
with medium-sized cable manufacturers having high technological capabilities. These efforts have been successful andhave enabled us to continue to generate higher profits than other trading companies of wire and cable in the same
industry. In addition, as our main customers were manufacturers of automobiles, machine tools and semiconductor
manufacturing equipment, we became involved in the overseas business development of our customers, and we also
started to expand the operation to the overseas. At present, we have operations in six countries - Thailand, PR China, thePhilippines, Taiwan, Vietnam and the USA - and we plan to expand into India within the next five years. Through mergers
and acquisitions, the number of domestic subsidiaries has also increased to six, making us a corporate group capable of awide variety of activities, including semiconductor manufacturing equipment, automobile production lines, communicationand control materials, information and communication related products, and control cabinet design and production.

04

Medium-Term Management Plan - SS2026
We started preparing our medium-term management plan in the 1985s, when we became aware that we were about togo public. We mainly prepared three-year or five-year plan for internal use on an annual rolling basis, which wereexplained by the president at the nation wide company managers' meeting held in November each year. Basically, we arestill doing the same style. However, since eight years ago (December 2016), we have started disclosing our medium-term

management plan to the public. It seems to me that there exists now a sense of tension throughout the Group to achieve
this more. The five-year plan before the outbreak of the COVID-19 was not achieved once, but in the last two years it wasachieved two years ahead of the schedule. Continued high copper price and the recovery of the semiconductor andmachine tool sectors are the reasons behind this. A new three-year plan was launched last December 2023. In this newplan “SS2026”, our target of consolidated sales is J.Yen150,000Million and then our target of consolidated ordinary profit is
J.Yen10,000Million. Our strategy is to ride firmly on the strong flow of domestic capital investment following theconvergence of COVID-19. With power cables for construction in shortage, the true value of our just-in-time service isbeing tested. We will make full use of our 18 business bases nationwide to achieve sales and profits. In terms of global
development, we are also planning to expand into the market of India. Expanding overseas sales is also an important
medium and long term issue. And then there is the development of new products. The agricultural electrical wire "AbilHeater" is gradually penetrating greenhouse farmers, and we expect to expand sales in the future. At the same time, we
expect this product to contribute to the SDGs. After the convergence of the COVID-19, the DX and GX are said to be in thepipeline. We believe that digital transformation and green transformation will change the world significantly. We will firmly
incorporate these into our medium-term management strategy and aim for sustainable growth.

Towards a 100-year Company - Sustainability
There are 75,000 "100-year companies" in the world. Japan, in particular, is the world's longest-lived corporate nation,with more than 43,000 companies. The long-lived companies do not seek the stability only, but also have strategies thatmeet the time and era, which is said to be a characteristic of long-lived companies. This year we will celebrate our 75th
anniversary, and we will prepare for our 100th anniversary after 25 years from now on. We will implement our strategy
from a long-term perspective, with the three and five years of this medium-term management plan as a passing point. To
this end, we think it is important to clearly clarify what we must not change and what we will change. For us, what wemust not change is our founding spirit and corporate philosophy. In some respects, we believe that this is our global

standard ; "create new value, demonstrate our ability, strive to develop our business, contribute to society, reward ourshareholders and ensure the welfare of our employees". And what we are changing is to create our differentiation in linewith the market, and we want to remain the leader in the industry at any time. To achieve this, the support of ouremployees, customers, suppliers and shareholders is of the utmost importance. In particular, we think that employee
satisfaction is quite important in terms of human resources. We believe that bysatisfying all stakeholders and striving to continuously increase our corporate value,
we will find the path to becoming a '100-year company'. It is difficult to predict
what society will be like in 2050, our centenary year. However, if we continue tooperate the company with the current trend towards ESG and SDGs, we sincerely
hope that a wonderful world awaits us.
We will continue to aim for further development without being satisfied withthe current status and will strive to further enhance our corporate value to satisfy

all our stakeholders.
We sincerely wish that your continuous support will be given for the future.

05

Value Creation Story

1947
1949
1960年
1954
1960
1962
1965

1969
1970

1973
1974

Jan. Founded Nishimura Electric Trading Firm at 15 Doyama-cho,
Kitaku, Osaka City
Nov. Senshu Electric Co.,Ltd.established with capital of J.Yen300,000

Feb. Hiroshima Liaison Office (now Hiroshima Branch) opened
at Teppo-cho, Hiroshima CityAt the time of establishment

Nov. Opened Tokyo Office (now Tokyo Branch) at Taito-ku,Tokyo

June Built Senshu Bldg and made it Head Office at Togano-cho,Kitaku,
Osaka city
June Opened Osaka-Minami Office at Sumiyoshiku,Osaka city

Sep. Opened Sapporo Office (now Sapporo Branch) at Kita 1-Jyo Higashi,
Sapporo City.
June Newly built and opened Osaka Office-cum-Dlstribution Centerat Suita City,Osaka Pref. and consolidated Senri Office

Newly built and opened Data Processing
Center (now Head Office)(1989)

June Opened Takaoka Liaison Office (now Takaoka Office)at Takaoka City, Toyama Pref.
Apr. Newly built and opened Fukuoka Office (now Fukuoka Branch)
at Hakata-ku, Fukuoka City.and opened Takamatsu Office(now Takamatsu Branch) at Takamatsu City, Kagawa Pref.

1977
1984年
1983
1984年

May Opened Sendai Office (now Sendai Branch) at Sendai City,
Miyagi Pref.
Sep. Opened Toyohashi Office at Toyohashi City, Aichi Pref.
Listed on the new second section of the
Osaka Securities Exchange(1991)

1987
1984年
1989
1991

May Opened Saitama Office (now Saitama Branch) at Omiya City,
Saitama Pref.
Apr. Newly built and opened Data Processing Center (now Head Office)at Suita City,Osaka Pref.
June Listed on the new second section of the Osaka Securities Exchange
and increased capital to J.Yen2,104million
Nov. Obtained permit from the Governor of Osaka Prefecture asa registered contractor (Electrical Engineering & Piping Work)

1992
1993

Nov. Set up STEC CO.,LTD.

Nov. Newly built and opened Nagoya Branch at Nishiku,Nagoya City
Dec. Osaka Office(now Osaka Main Office) newly built and opened
at Suita City Osaka Pref.

1996
1998

1999

Osaka Office(now Osaka Main Office)newly built and opened at Suita City
Osaka Pref.(1993)

Jan. Listed on the second section of the Osaka Securities Exchange(code: 9824)
Apr. Opened Thai Representative Office (now SENSHU ELECTRIC
INTERNATIONAL CO.,LTD.)
June Commemorated 50th Anniversary (at Imperial Hotel,Osaka)
Commemorated 50th Anniversary(1999)06

Value Creation Story

2001
2002

2004

Nov. Set up SENSHU ELECTRIC(THAILAND) CO., LTD.

Nov. Listed on the Second Section of the Tokyo Stock ExchangeTokyo Branch acquired ISO9001 certification

Jan. Set up SHANGHAI SENSHU ELECTRIC INTERNATIONAL CO.,LTD.
July ISO 14001 certification acquired

Listed on the Second Section of the Tokyo
Stock Exchange(2002)

2006

2008
2009

Oct. Opened Keiji Office and Kyoto distribution Center at Yawata City,
Kyoto Pref.
May Opened Tokyo-nishi Office at Hachioji City, Tokyo

Mar. Opened Kusatsu Factory Autanation Center at Kusatsu City,
Shiga
June Opened Kitakantou Distribution Center at Utsunomiya City,
Tochigi Pref.

2010
2011

2013

Nov. Sankoshoji Co.,Ltd. became a wholly owned subsidiary

Installed solar powerat Osaka-Minami office(2013）of SENSHU ELECTRIC CO.,LTD.
May Opened SHANGHAI SENSHU ELECTRIC INTERNATIONAL
CO.,LTD. TIANJIN BRANCHMay NBS CO.,LTD became a wholly owned subsidiaryof SENSHU ELECTRIC CO.,LTD.
Newly built and moved Osaka-Minami Office to Matsubara City

2014

Oct. Set up SENSHU ELECTRIC PHILIPPINES CORPORATION
Nov. Installed solar power generating system at KUSATSU

Installed solar power
at KUSATSU FA Center(2014)

FA Center and started electric power selling business2015

Mar. ASSY ELECTRIC CO.,LTD. became a wholly owned subsidiaryof SENSHU ELECTRIC CO.,LTD.
June Taiyo Tsushin Kogyo Co.,Ltd. became a wholly owned subsidiaryof SENSHU ELECTRIC CO., LTD.

2016

Jan. Set up SEHSHU ELECTRIC TAIWAN CO.,LTD.
Mar. Head office moved to Suita City,Osaka Pref. Renamed Osaka
Branch to Osaka Main Office2017

Nov. Listed on the first section of the Tokyo Stock Exchange

Listed on the first section of the Tokyo
Stock Exchange(2017)2018

May Opened Kita-Kanto Special Corporate Sales Office and HigashiNihon Febrication Center at Utsunomiya City Tochigi Pref.
Oct. Newly built and moved Saitama Office (now Saitama Branch)
to Ageo City, Saitama Pref.

2019

May Relocated and renamed Suita Distribution Center and opened
Osaka Distribution Center in Toyonaka City,Osaka Pref.
Set up SENSHU ELECTRIC VIETNAM CO.,LTD,

2021

2022

May Opened Okinawa Distribution Center at Naha City,Okinawa Pref.

Opened Osaka Distribution Center(2019）

Aug. Set up SENSHU ELECTRIC AMERICA,INC.

May Hokuetsu denken Co.,Ltd. became a wholly owned subsidiaryof SENSHU ELECTRIC CO.,LTD.
Apr. Transition to Prime Market of the Tokyo Stock Exchange

2023

May Opened Hokuriku Branch at Kanazawa City,Ishikawa Pref.

Opened Hokuriku Branch(2023）

07

Value Creation Story

Long-term
visionFrom all stakeholders
Highly engaged
Becoming a 100-year company～ Go To 100 years enterprise ～Year ending Oct 2049

90919293949596979899

100

74757677787980818283848586878889
Year ending Oct 2023

08

Value Creation Story

Business
Model (1)JUST IN TIME SYSTEM▲ Osaka Distribution Center (Toyonaka City, Osaka Pref.)Here is Logistics Base in Osaka relocated from the original location and built in May 2019.
The site area is approximately 9,000 ㎡, making it one of the largest electric wire and cablestock yard in Japan.

"The necessary Quantities
at the Necessary Timing”
Electric wire and cable are said to be a difficult commodity
to stock due to their heavy weight, storage space and risk of theft.
We have distribution bases in Japan (from Sapporo to Okinawa) with awarehouse floor area of total 70,000㎡ approximately and a product of morethan 50,000 types of wire and cable, and we have a system for “JUST IN
TIME” that can respond to the customer’s requirement with policy for "Thenecessary Quantities at the Necessary Timing”.

09Value Creation Story

Business
Model (2)Original Products

Products proprietarily developed,
sold and to be being sold by our Company
We have developed FA cable (Factory Automation Cable), which are used for robot, etc.,with cable manufacturer and are selling them as our original products.
We accurately grasp a wide variety of customer’s needs and play a role as a trading company with certain technology.
FA cable are used for a variety of purposes, such as motion resistance, flexibility, oil resistance, chemical resistance, etc.,
and are also used for the customers in overseas. We have a system in order to respond to such needs “JUST IN TIME”,
and we are building a business model that is win-win-win for the manufacturer, us, and the customer.

10Value Creation Story

Business
Model (3)Cable Assembly

SEP/Philippines

Small lot, Multi Variety,and Short Lead Time
Senshu Electric/Japan
In addition to wire and cable business, we are able to meetthe needs for small lot, multi variety, short lead time of wireand cable assembly with termination, control panel, etc. atseven plants in our total 18 sales branch offices nationwide inJapan. We have also a close relation with our overseas
subsidiary of SENSHU ELECTRIC PHILIPPINESCORPORATION(SEP)/Philippines which has also establishedassembling line to meet the customer’s requirement.

11

Value Creation Story

Senshu Electric Group Value Creation Process
Based on our corporate philosophy of "We create new value, demonstrate ability, strive to develop our business, contribute to society, reward shareholders,provide benefits for our employees." we identify key ESG issues from "risks and opportunities" in the external environment, social issues, and management
resources, and conduct sustainability management. We will develop our business based on our three business models, which are our strengths, and create
economic and social value to realize a sustainable society with our long-term vision "From all stakeholders Highly engaged Becoming a 100-year company" under
our medium-term management plan.

External Environment

Social Issues

Environmental
Protection

Carbon Neutral
GX Policy
Natural Resource Crisis
Disaster Prevention
Infrastructure

Extreme Weather

Large-Scale Natural
Disasters

After Covid-19
Accelerating Digital Shift
DX, AI, IoT
Automation/Robot
Inbound
Event Attraction

Management Resources（INPUT）
Financial Capital
Ample cash and deposits and soundcapital measures
Shareholders' equity 48.7 billion yen
Equity ratio 49.7

Corporate
Philosophy/Vision
Medium-term Management Plan
Sales Div.

International Div.

Economic Value（OUTPUT）
P13～21

Net sales

124.9

Manufacturing Capital
18 domestic locations
Distribution warehouses with a total floorarea of approximately 70,000 ㎡
7 processing plants nationwide
Overseas bases (Asia, North America)

billion yen

Intellectual Capital

RecurringprofitOriginal Brand (@sky)
ISO9001/ISO14001

Livelihoods & People
Declining domestic
population
Declining birthrate andaging population
Labor shortage
Regionally decentralizedsociety
Sustainability awareness
Diversified lifestyles
Human rights issues

Human CapitalGroup Employees 819

Social and Relational CapitalMore than 250 suppliersMore than 3,700 customers
14 subsidiaries

Sustainability Management

Materiality

Biodiversity Loss

P22～53

8.7
billion yen
ROE

Environmental Protection
Carbon Neutral
Reduction of CO₂
Emissions
Renewable Energy
EV Conversion

Local Communities
Social Infrastructure
Development
Prosperous Urban Development(Osaka-Kansai Expo)/Urbandevelopment/commercial/ Housing / Medical care)

Industry & Economy
Semiconductor/Machine
Tools/Automotive
Manufacturing Equipment
AI/IoT/Robot andAutomationequipment

Employees

GlobalSupply Chain
Management

2023/10Administration Div.

Social Value（OUTCOME）

Risk and Opportunity

12.3％

Health Management
Great Place to Work

12

Business Development

Medium-Term Management Plan (FY10/2024 - FY10/2026)
On December 7, 2023, the Senshu Electric Group announced the formulation of a new Senshu ElectricGroup Medium-Term Management Plan, which will end in October 2026, as the Group achieved thegoals of the Senshu Electric Group Medium-Term Management Plan announced on December 8, 2022,
two years ahead of schedule for the fiscal year ending in October 2025.

10.0％

10 billion

150 billion

Progress of Business Performance万円）
Net sales

160,000

ROE

Recurring profit

Net salesor moreNet sales 124,967
Recurring profit 8,770
ROE 12.3％（Unit:million yen）

Recurring profit
140,000

14,000ROE
12,000120,000
10,000100,000
8,000

80,0006,000

60,0004,000

40,0002,000

20,000

0

0
16/10

17/10

18/10

19/10

20/10

21/10

Overview SS2026

22/10

23/10

24/10

25/10

26/10

(forecast)(forecast)(forecast)

Capital Investment
DemandIncrease sales in the direct demand sector
by developing original products andstrengthening the processing sector

Semiconductor/Robot/Automation/AI/IoT

Improvement of the Just in Time system
Strengthening of sales in Tokyo andsurrounding Kanto areas, and expansion ofshare for the other area

Decarbonization

Construction
DemandEV/Renewable
Energy/ESG/SDGs

Inbound/Expo/IR

Sales products other than electric wires
including own brand ones anddevelopment of new fields
Strengthening of global
deployment(Improvement profitability of theGroup)

Sustainability Management
Promotion of the Senshu Transformation
Project

SS: Abbreviation for Senshu Strategy
13

Business Development

Sales Division Strategy

Aiming to be a 100 years enterprise

Senior Managing Director
Executive Officer and General Manager of Sales Division

Toyo Usho

Since its establishment in Osaka in 1949, the Company has opened offices throughout Japan, including the Hiroshima SubBranch (now the Hiroshima Branch) in 1954, the Tokyo Sales Office (now the Tokyo Branch, 1960) and the Sapporo Sales
Office (now the Sapporo Branch, 1969), and has established 18 offices, including the Hokuriku Branch in 2023, The company
has been building and expanding its domestic network by opening 18 branches so far, including the Hokuriku Branch in 2023.
Through these activities, we have been able to develop and expand our domestic network through community-based sales
and marketing activities.
In order to promote our business model 'JUST IN TIME' through community-based sales activities, we have been working to
improve customer satisfaction by having logistics warehouses at each location, stocking a wide variety of inventories andmaking full use of our procurement and inventory capabilities to meet customer needs. In this context, the company aims to
be a technical trading company that not only sell electric wire and cable but also provide various technologies and information
related to electric wire and cable by utilizing its seven wire harness assembly plants in Japan to meet the needs for small-lot

and multi-variety of wire harness assembly. In addition, our six domestic subsidiaries comprise various industries, including
IT-related, telecommunications, PLC control design and high-current connector manufacturing, and we are expanding thescope of our activities by strengthening the cooperation with each subsidiary.
The Company's customers can be broadly divided into three categories: (1) (Electrical Materials Division) electrical materials
dealers (2) (Electrical Facilities Division) electrical contractors (3) (Direct Demands Division) end-users such as manufacturing
plants. We have contributed to the development of society and industry by providing products and services through various
customers in the (1) mobility-related business, (2) semiconductor-related business, (3) electronics-related business and (4)infrastructure and energy-related
business. Each of these customers

Market Share Expansion Strategy

is related to electricity, which isindispensable to our daily lives,
although they are in different

industries.
We have been maintaining thegood relation with manycustomers since our establishment,
and have defined the policy of ourSales Division based on theimportance of accurately grasping
the needs of each customer andresponding to their requests.

1. Strengthen community-based sales by further expanding domestic bases
2. Promote a 'just in time' system by strengthening the logistics network
Topics-1
3. Develop and expand sales of the original products
4. Strengthen cooperation with domestic and overseas subsidiaries

Strengthening the Direct Demands Division
1. Human resource development to realise a technical trading company
2. Capital investment and M&A to meet the needs of wire harness assembly
3. Business expansion into the agricultural sector with Abil heaters
Topics-2

Compliance and Internal Controls adhered to and enforced
1. Compliance as a company listed on the TSE Prime Market
2. Compliance with domestic and international laws and regulations
3. Improving engagement with employees and business partners

14

Business Development

International Division Strategy

Delivering the Valuefor the next 100 Years
Executive Vice President
Executive Officer and General Manager of International Division

Takao Tahara(*) As of 31 October 2023.

Since establishing a representative office in Bangkok, Thailand in April 1998 (locally incorporated in 2003), the Company

has actively pursued overseas development, particularly in Asia. Currently, in Asia, we have established local subsidiaries(i.e., sales subsidiaries) in Bangkok, Thailand; Shanghai, China; Taipei, Taiwan; and Hanoi, Vietnam to develop sales
activities. In the Philippines we established a manufacturing subsidiary specializing in the wire harness assembly of electric
wire and cable in October 2014. The Company has expanded to a scale where it can employ up to approximately 200
peoples. Another manufacturing subsidiary in Shanghai, China, manufactures and sells high-quality control panels andother products, mainly to Japanese companies in China. In August 2021, we also established a local subsidiary in Michigan,
USA, the world's largest market with state-of-the-art technology.
In order to expand sales channels in overseas markets based on the business model established in Japan, the Company
has been working to strengthen its global quality assurance system with a supply chain centered in Japan. The Group's
collective efforts have been made to build relationships of trust with customers and business partners by thoroughly
promoting the idea of 'quality first'. Skilled sales staff are dispatched to each local subsidiary to ensure that customer needs
are met and transactions are realized.

Just like in Japan, our overseas focus is on (i) mobility-related businesses, (ii) semiconductor-related businesses and (iii)electronics-related businesses. These businesses support global industry and are essential for the development of eachcountry from an ESG perspective. We are working to strengthen our system for the timely delivery of electric wire, cableand their assembled products, which are indispensable for the manufacturing processes and intra-plant transport in thesebusinesses, in accordance with customer requirements. As a trading company specializing in electric wire and cable, we
believe that one of the important mission of our overseas business is to develop high-quality Japanese FA cables for the
global market.
In this way, since the 1990s we have been promoting global development, but with the economic and social system
undergoing a period of major change, including de-carbonization, carbon neutrality, COVID-19, the Ukrainian crisis and the
spread of inflation, we have redefined our overseas business policy from an ESG perspective in order to foresee
sustainability of our business (i.e., permanent development of our business in response to change).

Environment
1.Strengthen semiconductors and mobility-related businesses that support EVs andautomated driving
2.Actively promotion of environmentally friendly products
3.Reduction of environmental impact through more efficient packaging and logistics
4.Effective utilization of resources and thorough implementation of the 3Rs (Reduce, Reuse,
Recycle) + Renewable15

Business Development

Society
1.Promotion of the employment of local employees
2.Promotion of the transfer of assembling technology to local employees at manufacturing
site
3.Promotion of the local products for local consumption, from procurement and assembling
to the delivery

Governance1.Strict Compliance through Internal Control Systems
2.Information sharing through a virtual space connecting each other via the web site
3.Creation of an environment where local employees can provide information to the head
office in Japan.

In a complex and changing social climate, the management decisions regarding overseas operations
are becoming increasingly difficult, but we will fulfil our corporate social responsibility to ensure that
our overseas operation help the industries in each country to emerge stronger after the COVID-19.

Senshu Electric Global Map[The units will organically collaborate with each other to create value by sending out
messages from Senshu Japan.]

B
D

C

A

[Markets to focus on].
(1) Mobility-related market(2) Semiconductor-related market(3) Electronics-related market

Market andEnsuring
correlation
betweenunits[Unit].
A. South East Asia Unit (SEI, Taiwan Senshu, SEP, SEV)
B. China Unit (Shanghai Senshu, Hokuetsu Shanghai)
C. North America Unit (SEA)
D. India Unit (Future...)SEI：SENSHU ELECTRIC INTERNATIONAL CO., LTD., THAILAND
SEP : SENSHU ELECTRIC PHILIPPINES CORPORATIONSEV : SENSHU ELECTRIC VIETNAM CO., LTD.
SEA : SENSHU ELECTRIC AMERICA., INC.

16

Business Development

Administration Division Strategy

Aiming to enhance corporate value

Senior Managing Director
Executive Officer and General Manager of Administration Division

Kazuto Narita

In order for the Company to develop further, it is important to "increase corporate value", and the mission of the
Administration Division is to study, plan and implement various measures for that purpose. The Company wasestablished in 1949 and has been engaged in business activities since then. In 1991, the Company was listed on theSecond Section of the Osaka Securities Exchange (i.e., specially designated brand) in order to further expand its businessactivities and change into a company in which many investors can invest. In the administrative department, the system
was strengthened to ensure accurate and prompt disclosure of financial results.
Subsequently, the company was listed on the Second Section of the Osaka Securities Exchange in 1996, on the Second
Section of the Tokyo Stock Exchange in 2002, on the First Section of the Tokyo Stock Exchange in 2017, and moved to

the Tokyo Stock Exchange Prime Market in 2022. The Company strengthened the function of the administration divitionin line with the change for list of the Securities Exchange. The Company's management philosophy is to strive for thedevelopment of the company's business, to contribute to the society, to return profits to shareholders and to ensure thewelfare of employees.
The Administration Division, which is a support department for the company's operations, is committed to leading thecompany in the following matters in order to achieve the company's medium-term management plan and to further
increase the corporate value.

Compliance with laws and regulations.
1. Compliance with the Group Code of Conduct
2. Thoroughness of the Compliance
3. Risk Management (Enhancement of BCP system)
4. Establishment of a Group helpline

Compliance with the Corporate Governance Code.
1. Enhancement of the Internal Control System
2. Enhancement of the disclosure of Corporate Information
3. Study of the Measures to return profit to shareholders
4. Establishment and Operation of Nomination and Remuneration Committees
5. Conduct an evaluation of the effectiveness of the Board of Directors

Implementation of the Sustainability Management(ESG Management).
1. Environmental Initiatives
2. Human Resource Development (improving the Engagement)
3. Promotion of women's activities
4. Health Management Promotion

17

Business Development

Promotion of Global Corporate Activities
1.Securing a diverse workforce

The above will be implemented to further increase the corporate value,
We aim to become the No. 1 company to work for, the No. 1 company to do business with and the No. 1 company toinvest in.

Senshu Electric Group

Corporate
Philosophy
Medium-Term
Management Plan
Administration Division
Legal ComplianceCorporate Governance Code
Sustainability Management(ESG Management)
Global Corporate Activities

Increase in Corporate Value
No.1 Company to work forNo.1 Company to do business with
No 1 Company to invest in18

Business Development

Hokuriku Branch

Topics-1

Hokuriku Branch
1176-3, Uchiki-cho Higashi,
Kanazawa, Ishikawa, Japan
Site area: 6,685㎡
Total floor space: 4,645㎡(1F office and 2F warehouse)

Opened on May 1, 2023
The new branch is conveniently located 2 km from the Hakusan
Interchange on the Hokuriku Expressway, approximately 8 minutes
by car.
The new branch will cover the three Hokuriku prefectures (Ishikawa,
Fukui, and Toyama),
We will realize one of our business models,"JUST IN TIME" system.
In addition, It can be said that it is an environment
where synergy effects can be created in cooperation
with the neighboring Takaoka Office (Takaoka City,

Toyama Pref.) and our domestic subsidiary
Hokuetsu denken Co.,Ltd. (Nagaoka City, Niigata Pref.).

Expectations for the Hokuriku Region
Tourism

Industry

Agriculture

Research &Technology

Historical tourist attractions

Thriving Manufacturing

Rich natural environment

Beautiful natural

Industry

Research Institutes

Local brand products

environment

Traditional Crafts

Universities

Infrastructure development
and Capital investment

New field
19

Business Development

Topics-2

New Product : Abil Heater(Agricultural Underground PVC Insulated Heater)

Abil Heater
A new material for heaters
made of 40 micron stainlesssteel foil impregnated andcoated with a special element.
(Patent Pending)What is an Abil Heater?

This is a product that locally heats the root zone during the wintertime to control the temperature environment and raise soil
temperature to promote plant growth,
resulting in high yields and high profits.

Thermal imaging picture of soil heating

20

Business Development

Features and Benefits(1)Contribution to reduction of CO₂ Emissions
Structure of Abil Heater Wire andEnergy Saving Capability

Comparison for CO2 Emissions of Boiler
by Temperature of 5°C and 10°C
(CO2 emissions/Kg)

Originally, plastic greenhouses were heated using fuel oil,but the Abil heater uses electricity,
so it does not use fossil fuelsand does not pollute the air.
Conventional
Heater78%
Reduction

Abil Heater( Without Abil Heater)( With Abil Heater)*Simulation results in a constant environment(Test Location : Nagoya, Japan, Period : From
November to March)*CO2 Emissions from Abil Heater are not included.

(2)Improvement of Harvest Yield and Harvest TurnoverGraph comparing yield per plant (Period : December to early April)
About 190g of
strawberries

Yield
1.4
times
biggerWithout
HeaterWith
HeaterYield is an example only and may increase or decreasedepending on installation conditions and environment.
Abil Heater contributes to the SDGs

The Abil Heater website contains many exhibits at
exhibition, seedling videos, and case studies.
https://abilheater.com/

Abil Heater

21

Sustainability Management

Corporate Policy
Based on our corporate philosophy, which states that “We create new value, demonstrate ability, strive to develop ourbusiness, contribute to society, reward shareholders, provide benefits for our employees.” our group has adopted a basic
policy of sustainable management in which we continue to be a company with value to society by providing products andservices that meet constantly changing market needs through new ideas and proactive actions based on the experience,
knowledge, and technology we have cultivated.
In addition, while developing our business based on our corporate philosophy, we are strengthening our ESG initiatives,
which include reducing our environmental footprint (E: Environment), fulfilling our responsibility to supply electric cables
to society (S: Society), and ensuring fairness and transparency in management (G: Governance). Furthermore, we regard
these efforts as consistent with the Sustainable Development Goals (SDGs) advocated by the United Nations.
Our group recognizes that ensuring the sustainability of the global environment, which is the foundation of our businessactivities, is our top priority in order to continuously make contributions to society. We also recognize that the resolutionof climate change, which is an issue shared by all humankind, is a demand of the international community. Therefore, wewill steadily promote the realization of carbon neutrality through the use of renewable energy and the active introductionof new technologies. Additionally, we will actively work to solve climate change issues through the realization of adecarbonized society.

GovernanceIn order to promote sustainability management across the entire Group, the Board of Directors, the highest decisionmaking body for business execution, discusses and resolves specific measures to address environmental issues.
At the Sustainability Promotion Community, which is held semiannually, the Board of Directors discusses and resolves onpolicies to address environmental issues, formulates action plans for the Group's environmental issues, and monitors the

progress of these plans. The Board of Directors receives reports on the content of discussions and resolutions made by
the Sustainability Promotion Community, and discusses and supervises the Group's policies and action plans foraddressing environmental issues. The President & CEO chairs the Sustainability Promotion Community as well as theBoard of Directors, and is ultimately responsible for management decisions related to environmental issues. The content
of the discussions and resolutions made by the Sustainability Promotion Community is reported to the Board of Directors.

22

Sustainability Management

Risk Management
As the environment surrounding the company becomes increasingly complex and uncertain, it is essential to accurately
address risks that could have a significant impact on corporate activities in order to carry out management strategies andbusiness objectives.
The Risk Management Committee has been established as a risk management body for the entire Group, and regularly
identifies, examines, addresses, and discusses the Group's risks, and reports its findings to the Board of Directors.
In addition, the Group positions climate-related issues as a risk with significant management impact, and based on theinvestigation and identification of risks and opportunities by the Secretariat in charge of the Sustainability Promotion
Community, the Group will evaluate scenario analysis through the Sustainability Promotion Community and the Board of

Directors, and manage them appropriately.

Materiality Identification
We have identified key ESG issues (materiality) for sustainability management, and have also linked them to the
Sustainable Development Goals (SDGs) adopted by the United Nations, creating an ESG/SDGs comparison table.

ESG/SDGs Comparison Table
SDGs ItemKey Issues (Materiality)

Reduction of CO₂
emissions

Environmental
E conservation
activities

Response to
climate change

Major Initiatives

Creating a
S rewarding work
environment
Stable supply of
goods andservices

Improving engagementwith employees andbusiness partners

Objectives

●

●

●

○

○

Effective use of resources

●

●

●

●

●

○

○

●

●

●

○

○

Promotion of neighborhoodcleaning activities

Compliance withenvironmental laws
Acquisition of ISO 14001
and regulations
certification

Strengthening quality
control system

Quality andEnvironmental●

Promoting sales of ecofriendly products

Strengthening
information security

Code of
Conduct●

Promote the introduction of solar
power generation and LED lighting

Respect andConsideration
for human rights

Corporate
Philosophy

Support for the TCFD
recommendations

●

●

●

●

●

○

○

●

●

●

●

●

○

○

●

●

●

●

○

○

●

Promoting women's
empowerment●●

Various training and qualification
recommendations●●

Supporting the development of the next
generation
Supporting the employment of persons
with disabilities
Supporting workplace learning
experiences●●

Promotion of health
Disaster relief
management andenhancement of health Acquisition of Health and Productivity
and safety
Management Organization certification
Safety and Health Committee

●
●

●

●

○
○

●

●

●

●

●

●

○

○

●

○

Promote diversity
Enhancement ofwelfare benefits

GLTD (group long-term disability incomecompensation insurance) coverage

●

○
●

●

Further Enhancement ofBoard Deliberations

●

●

●

○

○

Legal Compliance/Compliance education and training

●

●

●

○

○

Maintain BCP system.
Business and other risks andcountermeasures

●

●

○

○

IR/SR activities

Enhancement ofCorporate Governance

Establishment of
G a governanceThrough compliancesystemRisk management

Sustainability Management https://www.senden.co.jp/en/act/sustainability/
ESG/SDGs Comparison Table https://www.senden.co.jp/en/act/esg_sdgs_table/

○

〇

23

Sustainability Management

Environment
We have established a "Quality and Environmental Policy" in conjunction with our ISO 14001:2015
and ISO 9001:2015 certifications.(excluding subsidiaries in the group)

Quality and Environmental Policy of SENSHU ELECTRIC CO., LTD.

We, SENSHU ELECTRIC CO., LTD. as the responsibility of nation's top general trading company ofelectric wire and cable, will strive in the improvement of quality and global environmental
conservation under the following policies in the business activities for sales of various wire andcable, sale of wire harness for machinery and equipment and manufacture and sale of control
panel.
1.

In order to enhance the effectiveness of our quality and environmental management system,
we will emphasize a process approach in all of our business activities and strive for continuous

improvement. At the same time, we will strive to improve customer satisfaction.
2.

In accordance with our management philosophy, we will establish the necessary operation
manual and then evaluate it periodically in order to comply with internal control systems,
domestic and foreign laws and regulations, including the J-SOX Act, and environmental laws,
regulations, and ordinances, as well as with all other requirements to which we agree.

3.

We will strive to develop the global operation.

4.

In order to protect the global environment, we will make the effective use of resources andenergy and work to prevent the pollution. We will also contribute to the society through theSDGs (Sustainable Development Goals).

5.

All employees shall understand and practice this Quality and Environmental Policy.

This quality and environmental policy will be disclosed to external parties including customers,
suppliers, and local communities.

Motohide Nishimura
Representative Director and President
November 1st, 2023
SENSHU ELECTRIC CO., LTD.

24

Sustainability Management

ISO Certification Status
In a maintenance audit conducted in March 2023,
ISO 14001:2015 and ISO 9001:2015 was certified
by the company.

ISO14001

ISO9001

Acquired on July 23, 2004 ISO14001:1996 (JIS Q 14001:1996) Audit by JET

Remarks
Standard

ISO14001:2015（JIS Q 14001:2015）
ISO9001:2015（JIS Q 9001:2015）

・Head Office ・Sendai Branch ・Nagoya Branch ・Takamatsu Branch ・Saitama Office ・Takaoka Office ・Senri Processing Center

・Sapporo Branch ・Tokyo Branch ・Hiroshima Branch ・Fukuoka Branch ・Toyohashi Office ・Osaka Minami Office

April 28, 2006 - June 29, 2010 Expanded Audit ISO14001:2004 (JISQ14001:2004)

Examination andRegistration
organization

Perry Johnson Registrars, Inc.
（Perry Johnson Holding, Inc.）

・All offices acquired

June 18, 2013 Renewal Audit ISO 14001:2004 (JISQ 14001:2004) ISO

Registration
Summary

9001:2008 (JISQ 9001:2008) Integrated Audit by SGS

Certificate
Number

C2022-01881-R1（Environment）
C2022-01880-R1（Quality）

・All offices acquired

March 13-15, 2017 Maintenance Audit ISO 14001:2004 (JISQ 14001:2004) ISO

Registration
Scope

Sales, storage management, andshipping and receiving of electric
wires, cables, materials for electricalwork, and processed electric wire
products; manufacture of processed
electric wire products; and assemblyand processing of control panels.

9001:2008 (JISQ 9001:2008) Integrated Audit by PJR・Audit period change PJR maintenance audit All offices acquired

March 13-14, 2018 Transition Audit ISO 14001:2015 (JISQ 14001:2015) ISO
9001:2015 (JISQ 9001:2015) Integrated Audit by PJRPJR 2015 version transition audit All sites acquired

Quality and Environmental Management System

Environmental Policy
Medium-term plan for company-wide environmental objectives
Annual Environmental Objectives Implementation Plan

Continuous
Improvement

Requests, expectations andcomplaints from stakeholders
Operation/Management
Improvement implementation

Environmental management
systems at each site
Management Review

Internal environmental audits
External renewal audits25

Sustainability Management

Status of Effort
Operation of ISO14001
In order to operate ISO14001 (and ISO9001), we have prepared various standard documents including quality
and environmental manuals, and promote environmental conservation activities
based on our environmental management system.
In particular, at the review meetings held twice a year, the manager of
each department evaluate the status of their activities and promote continuous
improvement for the future.

Implementation of Internal Environmental Audit
Internal audit are conducted once a year to confirm that the activities of each division are in compliance with
the quality and environmental management system and that legal compliance is being maintained, as well as
periodic self-check of the quality and environmental management system by each division. During internal
audit, internally certified internal auditor visit each division to confirm that the quality and environmental
management systems are being properly operated. Once a year, we undergo an audit by a registeredcertification body to ensure that our quality and environmental management systems arebeing properly implemented and then the ISO 14001 and ISO 9001 certifications are
renewed once a year. Issues discovered in these internal audit are reviewed at review
meetings and other occasions.
We are continuously making improvement to further enhance our management system toreduce quality issues and environmental burdens.

Status of Compliance with Environmental Laws and Regulations, etc.
We have established a system to comply with environmental laws, regulations, ordinances, etc., and we keep
track of revision to environmental laws and regulations that must be complied with, and confirm the status ofcompliance. In the fiscal year ending October 31, 2023, we hereby confirm that we do not have any record forviolation of laws and regulations. We will continue to ensure thorough compliance with laws and regulations.

Emergency Preparedness
Each division conducts annual training to prepare for emergencies such as natural disasters and accidents.
These trainings are conducted in accordance with the procedures to be followed in the event of an emergency,
and the results are used to review the procedures and strengthen the system for emergency preparedness.
Although the COVID-19 made it difficult to conduct training for a while, the situation has gradually eased andtrainings are now being conducted under the conditions close to normal.

26

Sustainability Management

Global Environmental Conservation Activities(as of December 1st, 2023)

As part of our global environmental preservation
activities, we collect eco caps and return them toa NPO organization to contribute to reduce CO2
emissions.
*Eco Caps = Caps for Plastic Bottle*CO2 emissions reduction = CO2 emissions when incinerated as waste*The number of Ecocap received by the Company is posted on the website of
the Ecocap Promotion Association, a non-profit organization.
https://ecocap.or.jp/

Environmental Education and Awareness Activities
In order to improve the competence of our employees, the ISO secretary and environmental promotion
committee members in each department play a central role in providing general environmental education andtraining for workers engaged in the specific works. In addition, each division discloses and shares information
related to the environment both internally and externally for the purpose of horizontal sharing of theinformation.

Amenity Activities
As part of our environmental preservation activities, we actively participate in the implementation of cleaning
activities around each of our business sites and environmental activities in local communities.
Results for the fiscal year ended October 31, 2023
May 2023：Participated in volunteer activities for"Kanto Region Environmental Beautification Day" (Saitama Branch)
June 2023：Participated in Clean Campaign Nagoya 2023 (Nagoya Branch)

Environmental conservation activities
https://www.senden.co.jp/en/act/environment/maintenance/27

Sustainability Management

Environmental Data
1. Introduction of Renewable Energy
We have been promoting the introduction of solar power generation facilities, which was installed at sevenlocations(*) in the fiscal year ending October 31, 2023, and are in the process of installing them at newly
established locations with the aim of becoming carbon neutral.
(*) Osaka Distribution Center, Kusatsu FA Center, Saitama Branch, Toyohashi Sales Office, Osaka Minami Office,Tokyo Nishi Office
Hokuriku Branch started in May 2023 or later and thus is not included in the following calculation.

（Mwh）
2020/10 2021/10 2022/10 2023/10
Actual Results

371.1

378.9

385.8

379.3
（Mwh）

2. Reduction of Electricity Consumption
Although we have been making efforts to reduce electricity consumption by installing solar power generationequipment, the electricity consumption continued to exceed that of the previous year due to an increase in theoperating hours of air conditioners to prevent heat stroke during the high temperature summer season, an
increase in delivery along with sales growth, and an increase in the number of employees. However, we havecontinued energy-saving activities, such as switching from fluorescent lighting to LED as needed, and were able
to reduce power consumption in the fiscal year ended October 31, 2023. We will continue to promote activities
to reduce power consumption.

(Ｍwh)
2020/10 2021/10 2022/10 2023/10
Actual Results

2,399

2,501

2,609

2,511
（Mwh）

28

Sustainability Management

3. Improvement for Fuel Cosumption ofCompany Vehicles（㎞/ℓ）

We have continuously achieved the target byintroducing hybrid and compact cars and promoting

eco-driving. We will continue our efforts to improvefuel efficiency.

4. Effective Use of Resources（％）

We are working to reduce waste from our businessactivities and improve the recycling ratio. We willcontinue to thoroughly implement the 3Rs (Reduce,
Reuse, Recycle) + Renewable (Recyclable).

(％)
2020/10 2021/10 2022/10 2023/10
Actual Results

69.4

63.6

68.2

67.6

5. Sales of Environmentally Friendly
Products（million yen）

We strive to promote sales of environmentally friendly
products which will be highly considered to theenvironment. These are mainly eco-cable, solar cable,
and LED-related product. Demand for environmentallyfriendly products is expected to increase in the future,
and we will continue to aggressively market theseproducts.

(million yen)
2020/10 2021/10 2022/10 2023/10
Actual Results

7,299

8,997

9,907

11,32429

Sustainability Management

SDGs Promotion Group Activity Report ①
Web Distribution Number of Accounts (Number of Accounts)

SDGs Promotion Group was established in November 2021
to promote business efficiency by linking operations andbusiness activities to the SDGs. The group is working toachieve the SDGs. Since the outbreak of COVID-19, we arereiterating Web distribution service that background on theincrease in telecommuting among business partners andtheir efforts to decarbonize and improving operational
efficiency due to labor shortages, can respond to change inlaws and regulations, etc. as a matter of commitment.
The system that allows documents that were previously issued and mailed on paper to be viewed anddownloaded on the web is an improvement and a means of reducing costs and improving efficiency. As of
October 31, 2023, approximately 30% of our clients are using this service.

Information Disclosure Based on TCFD Recommendations
In December 2021, Senshu Electric Co., Ltd. expressed its support for the TCFD (*)
recommendations established by the Financial Stability Board (FSB).
In June 2004, we acquired ISO 14001 certification, established an environmental management system, andactively promoted environmental conservation activities as well as sales of environmentally conscious products inaccordance with our president's quality and environmental policy.
Since 2004, we have reported on and disclosed our environmental activities and efforts to reduce CO2 emissions
in our environmental report. However, we recognize that ensuring the sustainability of the global environment,
which is the foundation of our business activities, is a top priority. We also recognize that the resolution ofclimate change, which is an issue shared by all humankind, is a demand of the international community.
Therefore, we will continue to further enhance these efforts and disclose related information based on the TCFD
recommendations.
(*) TCFD
An abbreviation for the Task Force on Climate-related Financial Disclosures. In June 2017, the Task Force released its final
report (TCFD recommendations), which summarizes its recommendations on the disclosure of information on companies'
efforts against climate change. The Task Force encourages companies to disclose information on climate-related risks andopportunities.

Governance and risk management disclosures based on TCFD
recommendations are described in Sustainability Management (p. 22.23).

Strategy
We have conducted a scenario analysis to assess the resilience of our strategy to climate change risks andopportunities and the impact of our business and financial impact under different scenarios (1.5°C and 4°C). In
assessing the significance of climate change risks and opportunities, the Sustainability Promotion Division
identified items of business and financial impact in the categories of "transition risk," "physical risk," and"opportunity," and selected scenario identification and 7 assessment items for evaluation. In the evaluation, we
considered the "1.5°C Scenario" and "4°C Scenario" published by the Intergovernmental Panel on Climate Change(IPCC), and examined the degree of business and financial impact. These assessments are as follows.

30

Sustainability Management

Overview of climate change risks and opportunities and impact assessment of business and financial impact
Risk Overview

Impact on time, business, and financial impact

Type of risk
Changes in the world

Policy regulation

Tighter government environmental
regulations

Our RisksIntroduction of carbon tax

Risk Description

Tax increases due to carbon tax

Time

1.5℃

4℃

＊2

＊3

＊4

Mediumterm

Insignificant Insignificant

Transition
risk

MarketTighter government environmental
regulations

Rising renewable energy prices

Energy Procurement.

Medium-Increased energy costs

term

Insignificant Insignificant

Risk

Acute

Flood damage due to typhoons,Base Closure

torrential rains, etc.

Data center shutdown

Physicalrisk

Rising temperatures andChronic

precipitation, changing weather

Restriction of business activities due to suspension of
shipments
Damage to company buildings and other fixed assets
Suspension of company-wide sales activities

Long term

etc.

Opportunity Overview

Energy source
Opp
ortu
nity

Market, Products andServices

Policy regulation

Procuremen
Increased environmental awareness andChanging lifestyles
Increasing number of sustainability-oriented
companies

Tighter government environmental
regulations

Our Opportunitie
Entering the Electricity Retail Business
Increasing Profitability through the Use ofRenewable Electricity
Responding to the demand for renewableenergy in general households
Proposing sustainable lifestyles

Very large

Large

Very large

Impact on time, business, and financial impact

Opportunity Description
Direct procurement of electricity to
Reduction of intermediate costs
Sales to environmentally conscious
companies
Zero greenhouse gas emissions.

Introduction of carbon tax*1

Scope of coverage: Non-consolidated basis*2

Time horizon: Short-term: FY2025, Medium-term: FY2030, Long-term: FY2050

*3

Large

Product durability issues due to global warming

Opportunity Type

Diversification of Electricity

term

Preventive costs incurred for equipment upgrades,

Rising prices and declining quality

patterns

Changes in the world

Medium-Carbon Tax Exemption by Achieving Zero
Greenhouse Gas Emissions

Time

1.5℃

4℃

＊2

＊3

＊4

Insignificant

Large

Large

Very large

Insignificant

Large

Short- tomedium-term

Mediumterm
Mediumterm

1.5°C scenario: A scenario in which a fundamental system transition is achieved and the increase in global average temperature at the end of the 21st century
is limited to less than 1.5°C above pre-industrial levels.

*44°C scenario: Scenario in which global average temperature rises around 4°C above pre-industrial levels without taking any measures to prevent global warming
beyond the current level.

Indicators and Goals
Under the slogan “Carbon neutrality by fiscal 2050,” we have set short- and medium-term targets to realize ourlong-term vision for 2050. Specifically, the target we hope to achieve by 2030 (Scope 1 + Scope 2) is a 50%
reduction in CO2 emissions compared to fiscal 2013 levels.

Long-term Goals 2050 Carbon neutral
Medium-term Goals 2030 50% reduction from 2013 level（t）

TCFD https://www.senden.co.jp/en/act/environment/tcfd/

31

Sustainability Management

Topics-1

Acquisition of land for solar power generation
With the aim of becoming carbon neutral,

we have acquired a solar power generation site in Mie Prefecture.
In October 2023, we acquired a solar power
generation site (199,939㎡) in Iga City, Mie Prefecture.

ｃｃｃｃｃｃ

Details are currently being planned, but it is expectedIga

to be able to supply most of the electricity used at our
MIE

image

business sites in the Kansai and Chubu regions, andwill make a significant contribution to our medium- tolong-term goal for reducing CO₂ emissions.

Topics-2

Green Bond Investment

The Company invests in green bonds (bonds issued to raise funds exclusively for
projects with environmental improvement effects, etc.) issued by the City of Osaka andFukuoka Prefecture.

Topics-3

Sankoshoji 60th Anniversary

Sankoshoji, a member of our group, celebrated the 60th anniversary of its establishment
on April 1, 2023, and produced commemorative gifts of environmentally friendly products
for distribution to its customers.

Toothbrush made from Non-edible or discarded rice

Made from marine plastic waste(Reduces CO₂ emissions by 20%)/Made by LAPIS

Ballpoint pen / made by Pilot

32

Sustainability Management

SocialBusiness Partners/Customers
Security Reinforcement
We has established the Group Basic Policy for Information Security in the course of its businessactivities.

The Group Basic Policy for Information Security

The Group of SENSHU ELECTRIC CO., LTD. (hereinafter referred to as the "Group") believes
that the ensuring information security is one of the most important issues for the normal andsmooth conduct of its business activities.
We have established the Basic Policy for Information Security as a guideline for protecting theGroup's information assets, for which we implement and promote as follows.

1.Protection of Information Assets :The Group shall take appropriate organizational and technical measures to ensure theprotection of the confidentiality, integrity, and availability of the information assets.
2.Compliance with Laws and Regulations :The Group shall comply with all laws, regulations, and rules related to the information
security.
3.Education and Training：
The Group shall provide necessary education and training to ensure that management
and employees are fully aware of the importance of the information assets.

4.Continuous Improvement：
The Group shall evaluate and review this "Basic Policy for Information Security" andrelated rules and management systems on a regular basis to continuously improve theinformation security.

Motohide Nishimura
Chief Information Security Officer
Representative Director and President
October 27, 2016
SENSHU ELECTRIC CO., LTD.

33

Sustainability Management

Quality
We have obtained ISO 9001 certification and operate a quality management system. In cable assemblies (wireterminal processing), the Quality Assurance Department play a central role in working closely with
subcontractors (outsourcing companies, etc.), including domestic and overseas subsidiaries, to improve thequality of the product.

Engagement with Business Partners
From the fiscal year ended October 2022, we have been listed “improving engagement with business partners
and employees” as an important issue for sustainability management. In May 2023, the General Manager of
the Sales Division sent a message to all employees regarding how to interact with suppliers and sales partners
to improve the engagement between business partners. We will continue to make efforts to improveengagement with suppliers through product study sessions on the web site, which have become mainstream
since the outbreak of COVID-19, and through joint participation in exhibitions and events after the outbreakhas subsided.

Employee
Basic Policy for Securing Diverse Human Resources
Our Corporate philosophy states, "We strive to create new value, demonstrate our capabilities, develop ourbusiness, contribute to society, reward our shareholders, and provide for the welfare of our employees," and we
recognize the importance of developing employees who are not afraid of failure and have a spirit of challenge, andcreating a willingness to take on challenges for new categories.
To this end, we believe that further improving individual performance by hiring a diverse workforce without regard
to gender, nationality, career, etc., incorporating a variety of ideas, experiences, and values, raising employee
satisfaction, and promoting the creation of an environment in which each employee can work with a sense offulfillment will lead to the sustainable growth of the Group as a whole, as well as to the medium- to long-term
growth of the Group. It is our policy to develop an internal environment where employee can demonstrate theirabilities and work flexibly with work-life balance.
In terms of human resource development, the Company's basic human resource management principles are to"encourage each employee to work vigorously, demonstrating individuality, initiative, and creativity," "createhuman resources who are not satisfied with the current status, who are always aware of problems and findchallenges, and who take on the challenge for change," "treat employees fairly according to their job functions,roles, and performance, and maximize their motivation and abilities," and "create an energetic workplace”. Ourbasic policy is to develop human resources to achieve these goals.
As specific action, the Company has launched a personnel reform project and is promoting the following measures.
・Promotion of women's activities

・

Reinforcement of the education system

・Review of the job classification and grading system and the evaluation system

・Promotion of mid-career hiring

・

Improvement of employee engagement

・

Health management

34

Sustainability Management

Promotion of Women's Activities
We recognize that the promotion of women's activities is an important issue in our medium- to long-term humanresource policies, and we are focusing our efforts on this issue.
In order to increase the ratio of female managers, it is essential first of all to increase the ratio of women in
career-track positions, which are the source of such positions, and we have set targets to create an environment
in which female employees can easily demonstrate their abilities.
Specifically, we have revised the system by lowering the number of years of tenure required for promotion andadvancement, so that female employees can work enthusiastically toward promotion and advancement.
In addition, we have relaxed the conditions for changing job titles to make it easier for female employees ingeneral positions to change to career-track positions, and revised the system to enable female employees withability to actively change their job titles.
Thus, by reviewing the job classification and grading system, creating an environment that facilitates job title
changes, and expanding the shorter hours system for childcare, we have created a system that makes it easier for
employees to balance the work and the childcare.
We plan to continue to promote the development of personnel systems that allow female employees todemonstrate their abilities, as well as to further strengthen education and information release, such as careeradvancement training, to promote the active participation of women in the workforce.
Current and target ratios of female career-track and management positions

Male

FemaleAll workers

100.0%

60.6%

9.8%

Regular workers

100.0%

69.0%

6.1%

Non-regular workers

100.0%

85.0%

Target item

Current Status (2023/10)

Target (2026/3)

Increase the ratio of female

8.1%
5.8%

career-track employees
Increase the ratio of female managers

2023 Difference of salary between male and female

Note 1: Regular workers are calculated as the sum of regular employees(total of career-track, technical, and general positions).
Note 2: Non-regular workers are calculated as contract employees(total of part-time and full-time workers).

Recruitment of Foreigner
The Company has traditionally hired foreign students, mainly in the International Division. In order to promote
globalization and increase the ratio of overseas sales, we intend to continue to hire foreign students on aregular basis and strengthen our recruitment of foreigner.

35

Sustainability Management

Ratio of foreign employees in management positions

Employment ratio of foreigner (Employees)
The Number of people

Employment Ratio

Male

4

1.0%

Female

3

1.8%

Total

7

1.3%

The Number of people

Employment Ratio

229%

Management of foreign hires＊As of October 31, 2023

Target value: Target to maintain current ratio＊As of October 31, 2023

Mid-career recruitment
Our hiring policy is based on the hiring of new graduates. We have also combined mid-career hiring to promote
the activation and diversification of our company by utilizing the skills and careers acquired at other companies.
In addition, we have a personnel system in place that regularly promotes part-time and temporary employees

to full-time positions every year, allowing motivated and capable employees to further demonstrate theirabilities and increase their motivation.
We will continue this policy in the future, and aim to establish a system that allows each employee to feel
fulfilled and easily demonstrate his or her abilities.

Ratio of mid-career hires
2020/102021/102022/102023/10

Male

33%

25%

56%

52%

Female

29%

27%

38%

33%

Total

31%

26%

50%

45%

*Publication of mid-career hiring ratios based on the Comprehensive
Labor Policy Promotion Act
Number of full-time employees appointed from part-time and temporary employees

The number of people

2020/102021/102022/102023/10

6

5

4

4

Employment of the Handicapped

Employment ratio of persons with handicap

The Company promotes the employment of persons
with handicap and is working to achieve the legally
mandated employment ratio of persons with handicap.
We also aim to create a fair and nondiscriminatory
work environment where all peoples are treated as
employees in the same manner.
2020/102021/102022/102023/1036

Sustainability Management

ーーーExamples of activities for hiring people with handicapーーー◇ We participate in company information sessions for people with handicap held regularly by Hello Work and otherorganizations to solicit job offers.
◇ We are reviewing the facilities at each location, renovating them as needed, starting with those that are barrier-free, andpreparing facilities to accommodate the handicapped, we are building a system that takes into consideration the safety
and health of handicapped employees.
◇ In order to deepen employees' understanding and awareness of people with handicap, we inform employees of our basic
policy on employment of people with handicap through internal newsletters and other means.
◇ The Human Resources Department provides support for the employment of people with handicap at each of ourbusiness locations, and we have established a system that allows for easy consultation even after hiring.
◇ In order to develop job opportunities for people with handicap, we are identifying the work of people with handicap inthe sales, administrative, logistics, and assembling work divisions, and are working to improve overall work efficiency.
◇ In order to promote employment of persons with handicap, we have introduced a farm-style employment system forpersons with handicap.

Introducing farm-based employment for people with handicap at“WAKU HAPPINES Farm PLUS OSAKA”
We have been promoting employment of people with handicap mainly at our distribution and assembling centers,
and in November 2022, we introduced a new system of employment of people with handicap at a farm called"WAKU HAPPINES Farm PLUS OSAKA," where freshly harvested vegetables are distributed to employees and others.
As a future prospect, we are considering expanding the scope of our social contribution activities to achieve thegoals of the SDGs by donating harvested vegetables to disaster-stricken areas and children's cafeterias, in addition
to increasing the employment ratio of people with handicap.

Retirement Reemployment
We have introduced a retirement reemployment system with the aim of utilizing the skills, wealth of experience,and knowledge that our employees have developed over the years to help maintain corporate productivity, andto pass on training and expertise to younger employees. We have also established a system whereby capable
personnel can maintain their motivation and demonstrate their abilities even after retirement.
For employees who are highly motivated, capable, and have management skills, we have introduced a system
whereby they continue to hold their positions after rehiring and their compensation is commensurate with theirperformance without reducing their compensation. The Company has also introduced a system that reflects theevaluation and results of employees who have been demoted at retirement age. We have also established aflexible work system that allows employees to choose to work shorter hours or to work every other day.

Retirement Reemployment Ratio

2020/102021/102022/102023/10100.0%

66.7%

100.0%

85.7%

37

Sustainability Management

Support for the Development of the Next Generation
In accordance with the Law for Measures to Support the Development of the Next Generation, we haveestablished and will promote a general business owner action plan to improve the employment environmentand diverse working conditions so that employees can balance work and childcare.
SENSHU ELECTRIC CO.,LTD. Action Plan
(Based on the Next Generation Nurturing Support Promotion Act)
In order to create an employment environment in which employees can
exercise their abilities and work comfortably in harmony with their workand private lives, the action plan is as follows.
1. Plan period: Five years from November 1, 2022 to October 31, 2027
2. Details
Agenda 1: To enable employees to secure time for childcare, reduce
overtime hours and establish an internal system that facilitates leavetaking.
＜Measure＞*Alert employees who work long hours every month*Establishment of days to promote use of paid leave*Disclose the status of paid leave utilization
Agenda 2: Promote the use of male childcare leave<Measure>*Disclose the status of male employees taking childcare leave*Provide training for managers
Agenda 3: Regularly inform employees on childcare leave of internal
information to allay their concerns about returning to work.
<Measure>*Sending of in-house newsletters, handbooks, etc.
*Periodic notification of changes in internal systems, internal rules,
internal systems, personnel changes, etc.

――――

Childcare Leave Program Initiatives―――――

In addition to the childcare leave system, we have a special leave system for births and a shortened working hoursystem for childcare after returning to work. The statutory shortened working hour system for childcare is available
until the child enters elementary school, but the company allows employees to use the system even after the childenters elementary school. Specifically, the hours can be shortened by up to two hours until the child advances to thefourth grade of elementary school. Because of this system, it is possible for employees to work up to two hours lessafter taking childcare leave. As a result of this system, the return-to-work ratio after taking childcare leave is100%.
The ratio of male employees taking childcare leave is also high. The Company is committed to improving the ratio ofmale employees taking childcare leave, and thelatest acquisition ratio has been increasing as aresult of internal educational activities. We willcontinue to make further efforts to raiseawareness of the importance of childcare leave,with the goal of achieving a 100% take-up ratio
by March 2026.

Ratio of female taking maternity leave
Number of women who
took leave/childbirths

2020/102021/102022/102023/10

9

5

8

5

Ratio of women who took/

9

100.0%

maternity leave (%)/

5100.0%/

8

100.0%/

5

100.0%

Ratio of male taking maternity leave
FY2020
Number of women who
took leave/childbirths
Ratio of women who tookmaternity leave (men)

0

/
0.0%

21

FY2021
2

/
22.2%

9

FY2022
9

/

22

40.9%

2023/10
8

/

11

72.7%

38

Sustainability Management

Work-Life Balance
In addition to promoting the advancement of
women, we are committed to health management

and aim to create a system that allows flexible
work styles to achieve work-life balance, including
the promotion of paid leave and childcare/nursing
care leave systems.

Improving Employee Engagement
In an effort to improve employee engagement, we conducted our first Employee Engagement
Survey in 2023. The survey results showed that the overall employee engagement survey score was
4.28 points, and while the overall score for vitality was high, and the degree of penetration ofphilosophy and strategy and understanding of company policies were generally high, some issues
were identified, such as low scores for younger employees by age group. We will therefore
implement the following measures to improve employee engagement.
Specific measures

Human Resources Policy Items

Policies and Strategies
In Division and Management

Personnel grading
systemCreating opportunities for younger employees to interact with management
Improvement of management skills through implementation of promotion
examinations(All candidates for promotion to management positions and all existing managers)

Implement new education and training programs for department heads andEducation and Training

section managers to acquire and improve management strategies, 1-on-1
meeting skills, etc.
(In 2024, all department heads will receive 2 days of training totaling approximately 8 million yen)

Personnel rating system

Internal disclosure of evaluation items and promotion system to improve
acceptance of personnel evaluation

Employee Skill Development
In order to develop a business model that generates highadded value as a trading company with technology centered

Major QualificationsFirst-Class Electrician: 6

on electric wire and cable, we are actively working toSecond-Class Electrician: 56

improve the skills of our employees, and we support our.ComMaster ADVANCE: 2

employees in obtaining national and public qualifications.

.ComMaster BASIC: 51

39

Sustainability Management

Basic Safety and Health Policy
To create a work environment where employees can work safely and healthily bothmentally and physically, we aim to improve the quality of our work, and to becomea disaster-resistant company.

Health and Safety Priority Targets
・Reduce the number of occupational accidents to 6 or less for the entire company.
・Reduce the number of traffic accidents to 10 or less for the entire company.

・Implement initiatives to maintain and promote the health of employees based on
our health management policy.
・Build a crisis management system based on our BCP to prepare for emergencies
such as disasters.

Health Management Policy
We will actively promote initiatives to maintain and promote the health of our employees and create anenvironment in which employees can work in a state of physical and mental health and vitality, leading tohigher employee engagement.

Purpose of Promoting Health Management
To create an environment in which employees can work in a state of physical and mental health and vitality,
thereby improving individual performance, leading to higher productivity and business results, and achieving
the medium-term management plan.

Health Management Promotion System
Chief Health Officer(Representative Director
and President)

Board of Directors
Management Council
rt

Instruction

Osaka Electric Wire
Industry Health Insurance
Associationrt

ReportSecretary for HealthManagement Promotion(General Affairs Dep.)rt

Safety and HealthCommittee
Doctor

Health Maintenance and Promotion Initiatives

Senshu Electric
Employees

40Sustainability Management

Targets and Contents of Health Management Initiatives<Targets>・Ensure that employees undergo health checkups, and strive to maintain and promote employee healththrough in-house training and educational activities.
・Continue to implement annual stress checks and other measures to ensure mental health care for employees.
・Promote reforms in work styles and strive to improve employees' quality of life.
・Ensure implementation of measures to prevent infectious diseases, and strive to create a safe working
environment for employees.
・Establish and operate safety and health committees at each branch and sales office to improve the level ofinternal safety and health.
<Contents>

In order to promote the health of our employees, we conduct medical checkups for all employees. The medical
checkups for employees aged 30, 35, and 40 to 59 years old are "complete medical checkups" with a full range of
examination items.
In addition, from fiscal year 2023, the scope of coverage has been expanded to include employees aged 60 andabove.
Furthermore, in July 2023, the President and Representative Director sent a message to the Company’s
employees to promote efforts to reduce the smoking ratio, and as a specific initiative, the Company introduced asmoking cessation allowance system. In the future, the Company plans to prohibit smoking during working hours.
The Company's health management initiatives are published as part of its ESG activities in investor relations
materials for investors and in shareholder newsletters sent to shareholders.

Indicators related to healthmanagement

Each Indicator

Actual results for
FY2022

Regular Health Examination Visit
Ratio

100.0％

Stress Check Inspection Ratio

93.5％

Average overtime hours

12.8 hours per month

Ratio of paid leave

11.4 days per year

Ratio of persons maintaining anappropriate weight (40 years and older)

62.7％

Smoking ratio (40 years and older)

38.0％

Average years of service

15.6years

Targets for improvement of employee health issues
In FY2022, the ratios of employees aged 40 and over who were recommended to receive medical examinations

for "blood pressure," "lipids," "liver function," and "blood glucose" were as follows.
In FY 2023, we will promote health promotion activities to employees by setting a target value to improve fromthe results of the current fiscal year.

41

Sustainability Management

FY2021Item

FY2022

Actual results

Actual results

FY2023（YoY）

Target① Blood pressure

16.10％

15.90%

Improvement 0.20pt

Improved to less than 15.90② Lipids

4.02％

3.67%

Improvement 0.35pt

Improved to less than 3.67

③ Liver function

13.31％

13.46%

Deterioration 0.15pt

Improved to less than 13.46④ Blood glucose

8.98％

9.48%

Deterioration 0.50pt

Improved to less than 9.48

We also measure presenteeism (*) through an annual employee survey, which serves as an indicator tomeasure the current performance status of all employees.
*A measure of loss of performance due to health problems.
We use the SPQ (Single-Item Presenteeism Question, University of Tokyo, 1-item version) to evaluate ourown work for the past 4 weeks, with 100% of the work performance that can be demonstrated in theabsence of illness or injury.
The calculation method is "Presenteeism = 100% - response value.
～Described in the "Kenkatsu Analysis Report" prepared by Meiji Yasuda Life Insurance Company

FY2022

Item
Presenteeism

FY2023

Actual results

Actual results

15.8%

16.6%

FY2024（YoY）

TargetDeterioration
0.8pt

Improved to less than
16.6

In FY2023, the figure worsened by 0.8 pt. We will strive to improve the figure through various
health management initiatives.

Connection between health management and business goals

Strategic approachto health management, led by the chief health officer
健康経営責任者が主体となり、健康経営に戦略的に取り組む

Improve productivity and business performance by promoting employee

従業員の健康増進、個々のパフォーマンスアップによって、生産性と業績の向上に繋げる
health and enhancing individual performance.

Achieve theMedium-term Management Plan
中期経営計画を達成する

Motohide Nishimura
Representative Director and President(Chief Health Management Officer)
October 1, 2023
SENSHU ELECTRIC CO.,LTD.

42

Sustainability Management

Shareholders and Investors
IR Activities

Record of IR Activities in74th Fiscal Year

The President actively participate
in IR activities and The Corporate
Planning Office play a central rolein IR activities.

Financial Results Briefings (Osaka/Tokyo) ：2 times (December/June)
Company Briefings for individual investors：2 times(Web/ December and June)
IR Meetings with Institutional Investors : 40 time
(1-on-1, small meetings)

Expansion of the website (English version)
In order to enhance the disclosure materials and sustainability management information in English,
we have launched the English page of our corporate website in December 2022. We will continue toenhance the information disclosure to overseas institutional and individual investors.

Website (English)

https://www.senden.co.jp/en/

Shareholder Return Policy(1) Dividend
Setting stable dividend payment as our basic policy, we are paying dividends considering and examining
business results and retained earnings, etc. comprehensively. The annual dividend for the fiscal year
ending October 31, 2023 was 110 yen per share（*). The annual dividend for the fiscal year ending
October 31, 2024 is expected to be 120 yen per share (interim 60 yen, year-end 60 yen), an increase of
10 yen per share. As such, the payout ratio will be 34.1%.
(*) The stock split (1share → 2shares) with a record date of October 31, 2022 has been reflected.

（２）Treasury stock acquisition
We acquire treasury stock in order to improve shareholder returns, improve capital efficiency, andimplement flexible capital policies in response to changes in the business environment.

（３）Stockholder benefit program
Once a year, we send an original QUO card to shareholders who hold 100 shares or more. In addition,
as from 2019, we have added a long-term holding privilege.

Less then 1 year : Our original QUO card (1,000 yen)
One year or more : Our original QUO card (2,000 yen)

43

Sustainability Management

Community
Installation of AED
Our BCP (Business Continuity Plan) has a basic policy of "placing the highest priority on securing the lives of ouremployees." In November 2022, we installed AED (Automated External Defibrillator) at 22 locations throughout
the Company so that we can respond immediately in the event something should happen to an employee, andfor the peace of mind of our customers and local residents. In Osaka, a training session on the use of AED washeld and attended by employees. In the future, we will continue to train our employees to be able to act in an
emergency to use the AED by attending classes at the fire department using videos and other means.

Donation to Osaka-Kansai Expo 2025
In response to a request from the Japan Association for the International Exposition,
Osaka, Japan, which will host the 2025 Osaka-Kansai Expo, the donation was made tocover the construction costs of the venue. The donation to the Expo will contribute to
the achievement of the Sustainable Development Goals (SDGs), which is one of theobjectives of the Expo.

SDGs Promotion Group Activity Report②
Sapporo Branch
As an initiative to reduce food loss, the Sapporo Branch donated foods (two cases of driedbread) within three months of expiration to an organization participating in a food drive, out of
the "disaster stockpiles" stockpiled at the branch.

Sendai Branch
Used pen, correction tape, ballpoint pen refills, and other plastic writing implements werecollected from collection boxes in the branch over a four-month period, and one paper bag (30cm long x 25 cm wide) was collected and donated.

Sendai Branch
The Sendai Branch participated in the "Secondhand Clothes for Vaccine" initiative, sending
secondhand clothes collected at the branch.

44

Sustainability Management

Corporate governance
Basic approach to corporate governance
The Company believes that the essence of corporate governance is to ensure transparency and fairness in decision-making,to make full effective use of its management resources, and to increase the vitality of its management through prompt anddecisive decision-making, from the viewpoint of achieving sustainable growth of the Company and enhancing its corporate
value over the medium to long term and the company is striving to improve corporate governance based on the following
basic ideas

1.Respect the rights of shareholders and ensure equality.
2.Consider the interests of stakeholders, including shareholders, and work appropriately with them.
3.Disclose company information appropriately and ensure transparency.
4.Endeavor to ensure the effectiveness of the supervisory function of the execution of business by the Board of
Directors.
5.Engage in constructive dialogue with shareholders.

Outline of the corporate governance system
In accordance with the resolution of the 71st annual general meeting of shareholders held on January 28, 2021, theCompany has shifted from a company with an Audit and Supervisory Board to a company with an Audit and Supervisory
Committee, with a view to further strengthening its corporate governance.
The purpose of the transition to a company with an Audit and Supervisory Committee is to strengthen the supervisory
function of the Board of Directors by appointing Audit and Supervisory Committee Members who are in charge of auditing

the execution of duties by Directors as members of the Board of Directors, and to further enhance corporate governancethrough strengthening the monitoring system.
The Board of Directors of the Company consists of 15 members. The Board of Directors meets once a month and holds
extraordinary meetings as necessary to supervise decisions on matters stipulated by laws and regulations as well as
important management matters and the status of business execution, chaired by President, Motohide Nishimura.
The Management Council, which consists of all of the executives Directors, meets once a month to deliberate and makedecisions on important matters related to the execution of corporate business and to conduct preliminary examinations of
the Board of Directors.
The Audit and Supervisory Committee of the Company consists of three members: outside Director Hiromichi Yamajo, who
is a full-time Audit and Supervisory Committee Member, and outside Directors Masaki Hirata and Akira Moriwaki, who are
Audit and Supervisory Committee Members. All of them are outside Directors. The Audit and Supervisory Committee has asystem to monitor the execution of legal and appropriate management in cooperation with the Internal Audit Division andthe Financial Auditor.
The Company has established a Nominating Committee, which is a voluntary advisory body. The Committee deliberates on
the proposal for the election or dismissal of Directors to be submitted to the general meeting of shareholders, and the
proposal for the selection, removal, and division of duties of the Representative Director and executive Directors, theproposal for candidates for Executive Officers, and matters related to formulation and supervision, etc. of the President’s
succession plan to be submitted to the Board of Directors in response to the Board of Directors’ advisory, and provides
recommendations to the Board of Directors. The Board of Directors makes decisions on matters to be deliberated on withthe utmost respect for the recommendations of the Committee.
The Company has established a Remuneration Committee, which is a voluntary advisory body. The Committee deliberates
on proposals for remuneration for Directors to be submitted to the general meeting of shareholders and matters related to
the remuneration for Directors in response to the Board of Directors’ advisory and provides recommendations to the Boardof Directors. The Board of Directors makes decisions on matters to be deliberated on with the utmost respect for therecommendations of the Committee.

45

Sustainability Management

Corporate Body

Name of Director
Director：Motohide Nishimura(chaired),Takao Tahara, Atsuhiro Yoshida,
Kazuto Narita,Toyo Usho, Motokazu Nishimura, Kiyoto Fukada,
Nobuko Shimaoka, Masanori Hanayama, Isamu Fukuda
Outside Director：Toru Muneoka, Tsuyoshi Kondo, Hiromichi Yamajo,
Masaki Hirata, Akira Moriwaki

The Board of Directors

Audit and Supervisory

Outside Director：Hiromichi Yamajo, Masaki Hirata, Akira Moriwaki

Committee
Nominating Committee

Director：Motohide Nishimura
Outside Director：Toru Muneoka(chaired), Tsuyoshi Kondo, Hiromichi Yamajo,
Masaki Hirata, Akira Moriwaki

Remuneration committee

Director：Motohide Nishimura, Kazuto Narita
Outside Director：Toru Muneoka(chaired), Tsuyoshi Kondo, Hiromichi Yamajo,
Masaki Hirata, Akira Moriwaki

Skill Matrix of Each Director
Corporate

Knowledge

Sales &

International

ESG &Managementof Industry

MarketingBusiness

Sustainability

Motohide Nishimura

●

●

●

●

●

Takao Tahara

●

●

●

●

●

Atsuhiro Yoshida

●

●

●

Kazuto Narita●

Toyo Usho●●●

Motokazu Nishimura

●

●

●

●

●

Kiyoto Fukada

●

●

●

●

●

Nobuko Shimaoka●

Masanori Hanayama●●

Isamu Fukuda

●

●

Name

Compliance

●

●

●

●

●
●
●

●
●

Toru Muneoka

Finance &Accounting

●

●

●

●

●

●

●

●

●

●

●

●

●

Tsuyoshi Kondo
Hiromichi Yamajo

●

●

●

●

Masaki Hirata

●

●

●

●

Akira Moriwaki

●

●

●

●

●

Status of Internal Control System
The status of the Company's internal control system is posted on the Company's website.
https://www.senden.co.jp/act/governance/internal/

46

Sustainability Management

Status of Audit①Status of Audit & Supervisory Committee Member Audits
Audit and Supervisory Committee of the Company consists of three Directors (including three Outside Directors) who
are Audit and Supervisory Committee Members. In accordance with laws and ordinances, the Articles of Incorporation,
the Rules of the Audit and Supervisory Committee, and the Standards for Audit, etc. of the Audit and supervisory
Committee, and in accordance with the basic policies established by the Audit and Supervisory Committee, theDirectors as Audit and Supervisory Committee members audit the execution of duties by the Directors throughinspection of important approval documents, investigation of business and property conditions, etc., and attend
meetings of the Board of Directors and other important meetings. Directors who are Audit and Supervisory Committee
Members attend meetings of the Board of Directors and other important meetings and have voting rights at Board of
Directors meetings as members of the Board of Directors, thereby enhancing the effectiveness of the supervisory
function of the Board of Directors in the execution of business operations while fulfilling its auditing function.
In addition, they deepen mutual recognition with representative director, exchange information and opinions with theInternal Audit Office and accounting auditors, and work closely with the General Manager of the Administration

Division, who is in charge of risk management and accounting department, to enhance the effectiveness and efficiency
of audit and supervision of the effectiveness of the internal control system.
The main matters considered by the Audit and Supervisory Committee and the attendance of individual Audit andSupervisory Committee Members are as follows.
・ Formulation of audit policy and audit plan・ Preparation of audit report
・ Evaluation of accounting auditor and determination of their suitability for reappointment
・ Sharing of quarterly review report by the accounting auditor

Attendance at Audit and Supervisory Committee
Name

Attendance at the Audit andSupervisory Committee(Outside Director)

Hiromichi Yamajo

13 of 13 attendedAudit and Supervisory Committee Member(Outside Director)

Masaki Hirata

13 of 13 attendedAudit and Supervisory Committee Member(Outside Director)

Akira Moriwaki

10 of 10 attended

Job Title
Full-time Audit and Supervisory Committee Member②Status of Internal Audit
The Company's internal audit organization consists of a permanent Internal Audit Office (2 members), which report
directly to the President, and conduct internal audit such as accounting audit, operational audit, and audit of internal
control system from the viewpoint of effectiveness and efficiency of business execution in accordance with internal
audit regulation. In addition, the Internal Audit Office works closely with the Audit and Supervisory Committee member
and the accounting auditor to exchange opinions, etc., to enhance the effectiveness and efficiency of the audit.

③Status of Accounting Audit
Name of Audit Firm : Grant Thornton Taiyo LLC

Continuous Audit Period : 36 years
The above period may be exceeded due to significant difficulties in research.
Certified Public Accountants who performed the audit
Designated and limited liability partner Executive Employee : Hideyasu Kodama, Kazuhiko Doi

47

Sustainability Management

・Composition of Assistant for Auditing Operation
The Company's assistants for accounting audit services are 7 certified public accountants and 14 otherassistants, the Company has entered into an audit contract with Grant Thornton Taiyo LLC for accounting audit,
and is subject to audit under the Companies Act and the Financial Instrument and Exchange Act. Taiyo LLC

conducts audits of financial statements from the standpoint of an independent third party, and the Company
receive the report on the audit results.
・Selection Policy and Reasons for Selection of Audit Firm
In selecting an audit firm, the Company consider it essential that the audit quality, quality control, and overall
competence of the audit firm be sufficient to properly conduct the audit of the Company. If the accounting
auditor is found to fall under any of the items of Article 340, Paragraph 1 of the Companies Act, the Audit andSupervisory Committee will dismiss the accounting auditor based on the unanimous consent of the Audit andSupervisory Committee member. In addition, if it is deemed difficult for the accounting auditor to properly
perform its duties based on the above conditions for selection, the Audit and Supervisory Committee will
determine the content of the proposal at the General Meeting of Shareholders regarding the dismissal or nonreappointment of the accounting auditor.
・Evaluation of the Audit Firm by the Audit and Supervisory Committee

The Company's Audit and Supervisory Committee conduct evaluation through interviews with the audit firm,
confirmation of the status of audit implementation and audit content, and interview with the Internal Audit
Office and related department that work with the audit firm, to confirm that the audit by the audit firm is being
conducted appropriately in accordance with the audit plan and that the audit quality is appropriate.

Our Corporate Governance Structure

Corporate governance https://www.senden.co.jp/en/act/governance/48

Sustainability Management

Risk that may have a significant impact on investors' decisions and measures taken against risk are described below.

Risk
Assumed(1)Economic
Condition,
DemandFluctuation,etc.

(2)Fluctuati
on ofCopper Price(3) Decline
in themarketvalue of
Securities
held(4)Impairm
ent due todeteriorating BusinessConditions(5) Qualityof Products
handled.

Content

Counter Measure

As electric wire and cable, the main products
handled, are intended to use for capital
investment, trends in construction demand
and the extent of corporate capital
investment trends may affect businessperformance of the Company.

By targeting a wide range of industries for sales,rather than focusing on specific ones, such as
construction, machinery and equipment,
automotive, LCD and semiconductor manufacturing
equipment and so on, we are striving to minimize
the impact on our business performance bydeveloping businesses that can be covered by otherindustries even when construction demand declines.

As copper is the main material used forelectric wire and cable, which are the main
products handled, purchase price canfluctuate significantly due to change in theinternational market price of copper. Selling
price also customarily slide in line with theprice of copper, but if the purchase pricecannot be immediately passed on to theselling price, this may have an impact on
profit and loss of the Company.

As a risk hedge against a fall in copper price, theCompany focuses on selling inventory at a fast
turnover ratio and expanding sales of commercial
products that are not affected by copper price.

To maintain and strengthen business-tobusiness transactions, we hold shares in ourbusiness partners and a certain amount of
securities for fund management, and asudden deterioration in the stock market
could worsen our profit and loss and reduce
our net asset of the Company.

With respect to securities and investment securities,
the Company regularly monitor the market value
and financial condition of the issuing entity (thecompany of the business partner), and continuously
review its holdings in consideration of market
conditions and its relationship with the company ofthe business partner to reduce the risk of a decline
in market value.

The Group holds the tangible fixed asset suchas property, plant and equipment related toeach of its operating location, which may be
impaired due to a continuous deterioration in
operating profit and loss and a significant
decline in the market value of the land, which
is a major asset.

When acquiring asset for business premise, theGroup endeavors to acquire them at an appropriate
price in the light of third-party valuation andbusiness plan, and in accordance with accounting
standards for owned land, when an impairment loss
is recognized, it is recorded in the financial
statement.

The products handled by the Group arebroadly divided into the sale of electric
wire/cable and various components (trading
company function) and the supply ofassembled product (manufacturing function).
In principle, if a quality defect occurs in a
product sold, the manufacturer is supposed
to investigate the cause of the defect in the
product and take measures to prevent
recurrence. However, even in such case, theGroup may be subject to claim for a quality
defect for product sold to customer throughlawsuits or other means. On the other hand,
the Group is required to investigate the causeof the defect and take measure to prevent
recurrence of quality defect that occur inassembled products provided by the Group,
and in either case, risk related to the quality
defect handled may have a negative impact
on business performance of the Company.

To minimize the risk of these quality defects, basedon the concept of source control, the emphasis isplaced on creating a system to prevent defects fromthe product at planning stage, and the quality
assurance systems of suppliers are audited at thepre-order stage to confirm the conformity. In theevent of a defect in a supplier's product, weinvestigate the cause of the defect, check whether
the measures taken to prevent recurrence areappropriate and, if necessary, provide support for
the improvement of the quality assurance system.
For assembled products, the Quality Assurance
Department takes the lead and participates asmuch as possible from the order stage in order tobuild a complete quality assurance system, and inview of the importance of ensuring the global
quality of assembled products, the quality
assurance systems at overseas bases are being
continuously checked and improved.

49

Sustainability

Risk
Assumed(6)Overseas
Business(7)Manage
ment of theInformation(8) Natural
Disasters,
etc.

Content

Counter Measure

Overseas subsidiaries have been establishedin China, Southeast Asia and North America,
and changes in economic trends, political andsocial conditions, and changes in laws andregulations in the area may adversely affectour business performance and financial
position of the Company.

Overseas operations, where political, social andeconomic systems differ from country to country,
are conducted mainly by the International Divisionand the Affiliated Companies Management
Department, which work with legal and accounting
experts to ensure that the company can respondquickly to changes. In addition, the close
information exchange is carried out with eachbusiness partner and supplier in order to mitigate
the risk. Besides, the Export Control Office has been
established to manage exports in Japan from an
objective standpoint.

Under the Basic Policy on Information
Security (indicated in p33), the efforts are
made to prevent information leaks and todeal with intrusions to internal system fromoutside, but if an information system
shutdown or information leakage were tooccur due to unforeseen circumstances, this
could have a negative impact on businessperformance and financial position of theCompany.

To strengthen the system for unexpected events,
the risk reduction initiatives will be implemented
and the regular internal training will be provided.

In the event of a major earthquake or othernatural disaster or infectious disease, whichcauses human or material damage to theGroup's operating bases, the businessperformance of the Company may be
adversely affected due to suspension or delayof sales activities or supply of products tocustomers.

A Business Continuity Plan (BCP) was formulated in
October 2020 and is reviewed and updated asnecessary by the Risk Management Committee
every July. In addition to acting in accordance withthe basic policy "The highest priority is to secure
the lives of employees", the entire company iscommitted to taking systematic measures to"reduce material damage" and "restore business
operations as earlier as possible". As an overview,
the Company is able to quickly and flexibly respondto emergencies such as natural disasters and the
spread of infectious diseases, which require a caseby-case response, including the early identificationof the actual damage, the establishment of task
forces and support systems between bases asnecessary.

Risk Management
The Group has clarified the Group's risk management in accordance with the Risk Management Regulations and the Crisis
Management Regulations, and has established a risk management promotion system in the Risk Management Committee.
The status of the Group's risk management is audited by the Internal Audit Office and the results are regularly reported to
the Board of Directors and Audit and Supervisory Committee.

Compliance
The Group has established the Senshu Electric Group Code of Conduct to ensure the action in compliance with laws,
regulations, the Articles of Association and social norms, and has established a compliance promotion system in the
Compliance Committee in accordance with the Compliance Regulations.
The status of the Group's compliance is audited by the Internal Audit Office in cooperation with the Compliance
Committee, and the results are regularly reported to the Board of Directors and Audit and Supervisory Committee.
Besides, a hotline (internal reporting system) has been established and is operated in accordance with the Corporate Ethics
Helpline Regulations as a means for employees to directly provide information on legally questionable conduct, etc.
The Company has no relationship with antisocial forces or groups that threaten the order and safety of society, and isthoroughly committed to a resolute attitude towards antisocial forces and groups.

50

Sustainability Management

Messages from Outside Directors
As the highest decision-making body, the Board of Directors
is required to make difficult management decisions.
Fortunately, we have a Corporate Philosophy and Code of
Conduct left to us by our predecessors, and acting inaccordance with them will lead to 'Sustainability
Management', so I believe it is important to go back to thebasics.
While respecting the good things that have been passed
Outside Director

Toru Muneoka

down in our Company, I will continue to express what I
consider to be correct opinions at the Board Directors andother Management Councils, with pride and dignity as an
outsider.

As shown in our 'Corporate Philosophy', the activities of E
(Environment: reducing the burden on the global
environment), S (Society: responsibility for supplying electric
wire and cable) and G (Governance: ensuring fairness andtransparency in management) have long been unconsciously
fundamental to the way we manage our company.

Furthermore, in November 2006, we created a 10-point codeof conduct as the Senshu Electric Group Code of Conduct.
This anticipates the 'SDGs: Sustainable Development Goals'
proposed by the UN in 2015 and the 'Sustainability

Outside Director

Management' indicated in the 2021 revision of the 'Corporate

Takeshi Kondo

Governance Code' formulated in 2015. In addition, our Boardof Directors ensures an environment in which all directors
can speak frankly and freely, regardless of whether they are
inside or outside the company, and have sufficient discussion
when making decisions, including sometimes intensive
discussions on various issues.
As an independent outside director, I am involved in the

Company's decision-making process at the entrustment ofshareholders and have a responsibility to contribute to thelong-term enhancement of the Company's corporate value
while giving due consideration to the interests ofshareholders. To this end, we need to implement'Sustainability Management' based on 'ESG', as set out in the
Corporate Governance Code throughout the entire company.
In an external environment undergoing significant change,
we must formulate long-term strategies with a view to the
future, practice governance that enables appropriate
decision-making on issues, develop the human resources forthe next generation, pay an appropriate attention not only toshareholders but also to other stakeholders, including
employees, customers, business partners and local
communities.

In recent years, companies have been required not only tocomply with Compliance Management (law-abiding
management) but also to adhere to the Corporate
Governance Code ('Corporate Governance Guidelines'), solve
environmental and social problems on a global scale, andachieve ESG management ('Environment', 'Social' and'Governance') and SDGs ('Sustainable Development Goals')to achieve 'sustainable social growth', which require new
ways of thinking and doing business. And as said in ‘Matthew
No. 9 of New Testament’, "Put new wine in new leather
bags", it is essential for companies to create new systems,
organizations and rules.
As an independent outside director, I constantly monitor,
with the perspective of a legal expert, whether decisionmaking by the Board of Directors is legal and appropriate
and whether risk management is properly implemented in
the execution of business operations. I will also give myhonest opinion on the creation of a system that will enable
the Company to successfully meet new social demands andneeds, and I will make every effort to ensure that the51

Sustainability Management

Company can continue to develop and expand its businessin the new era.

Outside Director(Audit and Supervisory
Committee Member)

Masaki Hirata

Outside Director (Full-time
Audit and Supervisory
Committee Member)

Hiromichi
YamajoI have been a non-resident auditor for two years from 2019
and a non-resident Audit and Supervisory Committee
Member (Director) from 2021. As a non-resident member, I

I was appointed as a full-time auditor of the Company as an

am involved in the governance of the Company withindependent outside director since January 2019 and haveinformation from the Audit and Supervisory Committee andbeen a full-time Audit and Supervisory Committee Member,the Board of Directors, which I attend, but at Audit andalso as an independent outside director, since January

Supervisory Committee, the resident Audit and Supervisory

2021, when the Company transitioned to a company with

Committee Member explains the discussions at thean Audit and Supervisory Committee.

Management Council, the General Manager of the Internal

An overview of the Company's Corporate Governance is

Audit Office, who attends as an observer, explains theprovided in details on the Company's website, and theaudits of the sales offices, and I also have the opportunity

Board of Directors has conducted a questionnaire to all

to visit branches with the resident Audit and Supervisory

directors every year for the past seven years in order toCommittee Member. The Audit and Supervisory Committee

make the Board of Directors more effective, and has madealso has the opportunity to visit branches together with theefforts to make improvements as necessary in matters that

resident Audit and Supervisory Committee Members, andrequire improvement as an issue. The Board of Directors

we believe that we have gained a fairly detailed

has received better evaluations from outside directors,

understanding of the company's situation. In addition,

including myself, and we believe that this has led toindependent outside directors who are not members of thestronger governance of the company. In addition, theAudit and Supervisory Committee also participate in Audit

agenda of the Board of Directors used to consist mainly ofand Supervisory Committee as observers, and through thereports other than statutory resolutions, but based on theexchange of opinions, we are able to share theirabove questionnaire, we believe that the effectiveness ofperceptions.

the Board of Directors has been further enhanced by

The chairperson of the Board of Directors also make efforts

ensuring time for discussion of the company's management

to operate the Board in such a way that participants canissues and allowing outside directors with various

frankly express their opinions, and thus each outside

backgrounds to freely express their opinions. However, thedirector actively participates in discussions to improve thespeed of change in the environment surrounding companies

Company's corporate value by making use of theiris increasing in high, and soft law is updated and newrespective backgrounds. We will continue to make every

perspectives emerge every year. We are fully aware ofeffort to help the Board of Directors make management

these perspectives and will continue to contribute to thedecisions, which are becoming increasingly difficult amid

company's growth through improved governance.

changing social conditions.

52

Sustainability Management

taken place based on such information, in order to ensure
the appropriateness and reasonableness of business
management.

In-house tour
on April 27, 2023.
Outside Director(Audit and Supervisory
Committee Member)

Akira Moriwaki

Osaka Distribution Center(Toyonaka City, Osaka Pref.)I was appointed as an independent outside director (of the
Audit and Supervisory Committee member) in January2023, as I believe I can make use of my diverse experiencein banking and railway operations. I feel that the Company
is a trading company specializing in wire and cable withgroup sales of well over J.Yen100billion and stableperformance based on the 'JUST IN TIME' strategy, andthat the company might not be so big but is always
operating dynamically. Electricity is an energy indispensable
to society, and the electric wire and cable that mediate thiselectricity are positioned as 'lifelines that support organic
activities as basic materials for industry and daily life'. We
must build a corporate governance system appropriate tothese roles and responsibilities and meet the expectationsof our stakeholders.
When I was appointed as a board member at the previous
company, I learnt an important code of conduct from one ofoutside directors. In general, Japanese companies are moreor less highly homogeneous, with groups of people who areclose in their thinking and values. While this has theadvantage of good relations and a strong sense of unity
among members and achievement of the efficient

Osaka Main Office（Suita City, Osaka Pref.)performance, it also creates a sense of synchrony, where
members 'take in the background and intentions and act
accordingly'. It is well known that this is the soil for
maintaining the status with no desire for change and for theoccurrence of fraud and delays in its detection.
As an independent outside director, I place importance on
not being beaten by peer pressure and frankly expressing

reasonable and rational opinions based on my own
knowledge. At the decision-making stage, I will ensure thatthe principles of management decision-making are complied
with, such as (i) whether sufficient information and analysis
necessary for decision-making have been provided, and (ii)whether active questioning and exchange of opinions have53

Sustainability

Directors and Audit Committee Members (as of January 26, 2024)
President and Representative Director

Executive Vice President

Senior Managing Director

Senior Managing Director

Motohide Nishimura

Takao Tahara

Atsuhiro Yoshida

Kazuto Narita

Brief Personal History

Brief Personal History

Brief Personal History

Brief Personal History

Apr. 1978 Joined Okasan Securities CO.,LTD.
Aug. 1995 Advisor of Senshu Electric Co.,Ltd.
Jan. 1996 Director of the Company
Jan. 2000 President and Representative Director of theCompany (to present)
May 2018 President of Kansai Electric Wire Sales
Cooperative Association (to present)
June 2018 Outside Director (Audit and Supervisory
Committee Member)) of Kurabo Industries
Ltd.(to present)
Mar. 2022 Chairman and Representative Director of
Hokuetsu denken Co.,Ltd. (to present)
May 2022 Chairman, All Japan Electric Wire
Distributors Association (to present)

Mar. 1969 Joined the Company
Jan. 2012 Chairman and Representative Director of
SENSHU ELECTRIC INTERNATIONAL CO.
LTD. (to present)
Jan. 2016 Executive Vice President and Executive
Officer of Senshu Electric Co.,Ltd.(topresent)
Nov. 2017 Chairman and Representative Director of
SENSHU ELECTRIC PHILIPPINESCORPORATION(to present)
Oct. 2019 Chairman and Representative Director
SENSHU ELECTRIC VIETNAM CO.,LTD.
(to present)
Aug. 2021 Chairman of the Board, SENSHU ELECTRICAMERICA, INC. (to present)

Mar. 1974 Joined the Company
July 2006 General Manager of Saitama Sales Office
Oct. 2010 General Manager of Sendai Branch
Jan. 2012 Director, Executive Officer, Deputy General
Manager of Sales Div.
Jan. 2016 Managing Director, Executive Officer, Deputy
General Manager of Sales Div. and General
Manager of Tokyo Branch
Jan. 2020 Senior Managing Director, Executive Officer,
Deputy General Manager of Sales Div. andGeneral Manager of Tokyo Branch
Nov. 2023 Senior Managing Director, Executive Officer
and Deputy General Manager of Sales Div.(topresent)

Mar. 1982 Joined the Company
Jan. 2009 General Manager of General Affairs Dept.
Jan. 2012 Executive Officer, General Manager ofGeneral Affairs Dept.
Jan. 2016 Director, Executive Officer, Deputy General
Manager of Administration Div. andGeneral Manager of General Affairs Dept.
Jan. 2018 Managing Director, Executive Officer, Deputy
General Manager of Administration Div.
and General Manager of General Affairs Dept.
Jan. 2020 Senior Managing Director, Executive Officer,
General Manager of Administration Div. andGeneral Manager of General Affairs Dept. (topresent)

Senior Managing Director

Senior Managing Director

Managing Director

Director

Toyo Usho

Motokazu Nishimura

Kiyoto Fukada

Nobuko Shimaoka

Brief Personal History

Brief Personal History

Brief Personal History

Brief Personal History

Mar. 1988 Joined the Company
June 2010 General manager of Sapporo Branch
Jan. 2014 Executive Officer and General Manager of
Sapporo Branch
Jan. 2016 Director, Executive Officer, Deputy General
Manager of Sales Div. and General Manager
of Sapporo Branch
Jan. 2020 Managing Director, Executive Officer, andGeneral Manager of Sapporo Branch
Jan. 2021 Senior Managing Director, Executive Officer
and General Manager of Sales Div.(topresent)

Sep. 2009
July 2014

Joined the Company
President and Representative Director of
SENSHU ELECTRIC INTERNATIONAL
CO.,LTD.
Apr. 2019 General Manager of International Dept.
Jan. 2021 Director, Executive Officer, General Manager
of International Dept.
Aug. 2021 Director and President of SENSHU ELECTRICAMERICA, INC.
Jan. 2024 Senior Managing Director, Executive Officer,
General Manager of International Div. andGeneral Manager of International Dept. (topresent)

Mar. 1974 Joined the Company
Apr. 2004 General Manager of SHANGHAI SENSHU
ELECTRIC INTERNATIONAL CO.,LTD.
Nov. 2010 General Manager of Fukuoka Branch
Jan. 2012 Executive Officer and General Manager of
Fukuoka Branch
Jan. 2016 Director, Executive Officer, Deputy General
Manager of Sales Div. and General
Manager of Fukuoka Branch
Jan. 2020 Managing Director, Executive Officer andGeneral Manager Fukuoka Branch (topresent)

Mar. 1979 Joined the Company
May 2013 General Manager of Accounting Dept.
Jan. 2016 Executive Officer, General Manager of
Accounting Dept.
Jan. 2020 Director, Executive Officer, Deputy General
Manager of Administration Div. and General
Manager of General Accounting Dept. andExport Control Office (to present)

Director

Director

Independent Outside Director

Independent Outside Director

Masanori Hanayama

Isamu Fukuda

Toru Muneoka

Tsuyoshi Kondo

Brief Personal History

Brief Personal History

Brief Personal History

Brief Personal History

Mar. 1975 Joined the Company
Jan. 2009 General Manager of Head Office Sales Dept.
May 2015 General Manager of Hiroshima Branch
Jan. 2016 Executive Officer and General Manager ofHiroshima Branch
Jan. 2020 Director, Executive Officer, General Manager
of Osaka Head Office and General Manager
of 3rd Sales Dept.
Mar. 2023 Director, Executive Officer, General Manager
of Osaka Head Office, General Manager of 3rd
Sales Dept.and General Manager of Special
Machinery Dept. of Sales Div. (to present)

Feb. 1991 Joined the Company
Oct. 2010 General Manager of Corporate Planning Office.
Jan. 2016 Executive Officer, General Manager ofCorporate Planning Office.
Jan. 2022 Director, Executive Officer and General
Manager of Corporate Planning Office.
Nov. 2023 Director, Executive Officer, General Manager
of Corporate Planning Office and General
Manager of Information System Office (topresent)

Sep. 1984

Apr. 1991

Independent Outside Director

Independent Outside Director

Independent Outside Director(Full-time Audit and Supervisory Committee Member)(Audit and Supervisory Committee Member)(Audit and Supervisory Committee Member)

Hiromichi Yamajo

Masaki Hirata

Akira Moriwaki

Brief Personal History

Brief Personal History

Brief Personal History

Apr. 1979

Apr. 1978

Apr. 1980

Joined The Daiwa Bank, Ltd. (now Resona
Bank, Ltd.)
June 2004 Director of Japan Investor Solution ＆Technology Co.,Ltd.
June 2007 Director and Managing Executive Officer ofResona Trust & Banking Co.,Ltd.
Apr. 2009 Managing Executive Officer, Resona Bank,
Ltd.
June 2013 Executive Vice President and Director of
D&I Information Systems Co.,Ltd.
Jan. 2019 Full-time Outside Corporate Auditor of
Senshu Electric Co.,Ltd.
June 2020 Outside Director (Member of the Audit andSupervisory Committee) of Shikibo Co.,Ltd.
Jan. 2021 Outside Director(full-time Audit andSupervisory Committee Member) of Senshu
Electric Co.,Ltd. (to present)

Joined The Daiwa Bank, Ltd.(now Resona
Bank, Ltd.)Mar. 2002 General Manager of Head Office Sales
Dept. No.4 of Daiwa Bank, Ltd.
Apr. 2004 Regional CEO of Osaka Nishi Region and
Branch Manager of Osaka Nishi BranchManager of Resona Bank, Ltd.
June 2007 Executive Officer of Resona Trust & Banking
Co.,Ltd. (now Resona Bank, Ltd.)
Nov. 2011 Director of Youthland Co.,Ltd.
Jan. 2019 Outside Corporate Auditor of Senshu Electirc
Co.,Ltd.
Jan. 2021 Outside Director(Audit and Supervisory
Committee Member) of the Company (topresent)
Nov. 2021 Chairman and Representative Director of
Hachibuse Kaihatsu Kanko K.K. (to present)
June 2022 Representative Director and Chairman ofHachibuse Real Estate Co.,Ltd. (to present)

Joined Tohmatsu & Aoki Audit Corporation(now Deloitte Touche Tohmatsu LLC) Osaka
OfficeFeb. 1988 Registered as a Certified Public Accountant
Apr. 2006 Professor, Graduate School of Accounting,Kansai University (to present)
Mar. 2011 Outside Corporate Auditor of DDS Inc.
Jan. 2016 Outside Director of Senshu Electric Co.,Ltd.
(to present)
June 2019 Outside Corporate Auditor of Kyoei SteelLtd.(to present)

Joined The Fuji Bank,Ltd.(now Mizuho Bank,
Ltd.)
Seconded to the International Management
Dept. of the same bank as a Directorof Hwang An Bank, Ltd,(now The Star
Ten Bank (Hong Kong) Limited)
Apr. 2009 Managing Executive Officer of Mizuho Trust& Banking Co.,Ltd.
June 2013 Representative Director and President,Trust& Custody Services Bank, Ltd.(now Custody
Bank of Japan, Ltd.)
June 2018 Full-time Outside Corporate Auditor of
Keikyu Corporation
Jan. 2023 Outside Director(Audit and Supervisory
Committee Member) of Senshu Electric
Co.,Ltd.(to present)

Admitted to the Legal Training and ResearchInstitute of the Supreme Court.
Apr. 1993 Registered as an attorney-at-law
Apr. 1993 Joined Kondo Chiaki & Takeshi Law Office
Apr. 2001 President of Kondo Law Office (to present)
Apr. 2003 Registered as patent attorney.
Apr. 2012 Specially Appointed Professor, Kansai
University Graduate School of Law (topresent)
June 2016 Outside Corporate Auditor of Nippon
Shinyaku Co.,Ltd.(to present)
Jan. 2018 Outside Director of Senshu Electric Co.,Ltd.
(to present)

Apr. 1997

54

Financial Data

Financial Data Highlights

Net Sales（million）

Operating profit
Recurring profit

Total assets（million）

Net assets per share

Return on equity（ROE）（％）

Cash flow

Profit attributable to owners of parent（million）（yen）（million）

Earnings per share
Price earnings ratio

Total net assets（million）（yen/time）

Equity ratio（million)

Annual Average copper price（％）（Thousand yen/t）

55

Financial Data

Consolidated financial Data for the past 10 years（Million）

Fiscal year month

2014/10

2015/10

2016/102017/10

2018/10

2019/102020/102021/102022/102023/10

Net sales

75,931

76,132

67,66674,95682,03883,67674,28892,463

113,633

124,967

Gross profit

10,372

10,776

11,51012,014

12,831

13,222

12,07813,921

17,093

18,680

Selling, general and administrative
expenses

7,886

8,430

8,708

8,812

8,963

9,243

8,953

9,177

9,629

10,313Operating profit

2,485

2,345

2,802

3,202

3,868

3,979

3,124

4,743

7,464

8,366

Recurring profit

2,835

2,740

2,978

3,455

4,105

4,206

3,382

5,004

7,894

8,770

Extraordinary income

28

119

97

30

120

8

47

104

―

―

Extraordinary loss

―

138

279

16

501

195

7

―

15

3

Profit before income taxes

2,864

2,721

2,796

3,468

3,724

4,019

3,422

5,109

7,878

8,766

Profit

1,685

1,569

1,581

2,291

2,391

2,742

2,356

3,608

5,370

5,978

Profit attributable to owners of parent

1,663

1,570

1,585

2,289

2,371

2,714

2,351

3,583

5,314

5,920

Total net assets

33,18434,391

34,72737,08638,36839,74940,40942,886

46,39950,714

Total assets

60,16959,83956,83763,75067,311

68,58967,401

83,99095,381

101,367

1,579.88

1,652.64

1,714.61

1,830.83

1,921.82

2,047.40

2,147.90

2,342.59

2,578.24

2,843.95

Earnings per share （yen）

79.41

75.06

77.61

113.30118.18138.52123.51

193.75294.03333.10Equity ratio（％）

55.0

57.3

61.0

58.0

56.8

57.7

59.8

50.9

48.4

49.7

Price earnings ratio (PER) （time）

10.5

11.6

10.5

11.1

11.0

10.3

11.7

12.3

9.2

9.3

Cash flows from operating activities

2,064

2,403

3,232

3,035

3,660

3,349

4,451

9,397

6,335

6,940

Cash flows from investing activities

△ 373

△ 895

9

△ 3,248△ 2,648△ 1,199△ 395

63△ 3,727△ 3,116

Cash flows from financing activities

△ 387

△ 711

△ 983

△ 407

△ 1,032△ 1,525△ 1,769△ 1,742△ 2,091△ 2,400

764

748

567

709

777

706

680

1,012

1,195

1,232

Net assets per share （yen）

Annual Average copper price（Thousand yen/t）※※

Our Company conducted a 2-for-1 stock split of shares of common stock on November 1, 2022, and calculated net assets per share and net income per share on the assumption that the stock split
was conducted at the beginning of the fiscal year ended October 31, 2014.
The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others are applied from the beginning of the fiscal year ending October 31, 2022, and key
management indicators for the fiscal year ending October 31, 2022 and thereafter are those after the application of the said accounting standard and others.

56

Financial Data

Consolidated Balance Sheet（Million）

As of October 31, 2022

As of October 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Securities
MerchandiseWork in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

27,16522,57228,534
23,313

10,831

11,302

23
6,575
250
238
267
△ 14
67,910

9
6,914
247
257
271
△ 18
70,83010,895△ 4,604
6,290
1,414△ 1,098316
10,381
221
△ 127
93
632
368
△ 305
63
17,77912,028△ 4,9447,083
1,534△ 1,172361
12,282
199
△ 96
103
463
391
△ 331
60
20,355

156
182
339

122
180
303

1,695
5
3,000
896
4,523
△ 381
4,142
△ 387
9,352
27,471
95,381

2,310
－
3,000
715
4,681
△ 428
4,253
△ 400
9,878
30,537
101,367

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land

Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term time deposits
Deferred tax assets
Other

Accumulated depreciation
Other,net
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

57

Financial Data

（ Million ）As of October 31, 2022

As of October 31, 2023

Liabilities
Current liabilities

41,214
631
114
20
24
438
1,840
767
870
45,922

43,050
691
64
5
22
493
1,561
773
1,051
47,713

Deferred tax liabilities

107
60
29
1

42
54
49
8

Provision for retirement benefits for
directors (and other officers)

178

－

2,249
6
148
278
3,059
48,982

2,120
7
202
453
2,939
50,6522,575
2,690
44,255△ 4,454
45,0662,575
2,757
48,574△ 5,142
48,764

Valuation difference on available-for-salesecurities

660

961

Foreign currency translation adjustment
Remeasurements of defined benefit plans

390
6

446
156

Total accumulated other comprehensive
income

1,056

1,565

38
237
46,39995,38159
326
50,714
101,367

Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Accrued expenses
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings

Lease liabilities

Retirement benefit liability
Asset retirement obligations
Guarantee deposits received
Other
Total non-current liabilities
Total liabilities

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

58

Financial Data

Consolidated Statements of Cash Flow

（Million）

Fiscal year ended
October 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses
Loss (gain) on cancellation of insurance policies
Rental income
Impairment losses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of short-term and long-term investment
securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Proceeds from collection of loans receivable
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Fiscal year ended
October 31, 2023

7,878
547
17
59
86

8,766
598
34
86
5

4

16

△ 72
2
△ 99
△ 129
15
△ 4,110△ 1,635
5,331
133
15
8,046
72
△2
△ 1,779
6,335

△ 89
3
△ 26
△ 135
―
△ 1,211
△ 310
1,793
89
298
9,922
89
△3
△ 3,068
6,940△ 3,966845△ 1,156
1,270

△ 87

△ 262

70
△ 413
2
13
△ 266
307

80
△ 3,057
16
18
△ 275
140

△ 208

―

△ 25
△ 3,727108△ 3,116△ 1,028△ 988△ 74△ 2,091△ 736△ 1,610△ 54△ 2,400

168

49

685
25,49626,181

1,472
26,181
27,65459

Company Information

Business Location

Kusatsu FA Center

Head Office・Osaka Main Office・Osaka Distribution Center

Hokuriku Branch

Sapporo Branch

Takaoka OfficeSendai Branch

Hiroshima Branch

Kita-Kantou Special Corporate Sales Office

Keiji Office

Saitama Branch
Fukuoka Branch

Osaka-Minami Office

Tokyo Branch

Okinawa Distribution Center

Takamatsu Branch

Nagoya Branch

Toyohashi Office

Tokyo-Nishi Office60

Company Information

Subsidiary
Name of organization

STEC CO.,LTD.

Location

STEC Building, 3-10-12 Tarumi-cho, Suita City, Osaka, Japan

Month and year of

Description of Business

Sankoshoji Co.,Ltd.

Location

4-24, Minami-Kaneda 1-chome, Suita-shi, Osaka, Japan

Month and year of

November 1992

establishment

Name of organization

April 1963

establishment

Proposal and construction of various platform andserver solutions, etc.

Sales of electrical machinery and equipment and

Description of Businessconstruction materials

As an "ICT general trading company," STEC's strength is its ability to provide
a wide range of products and solutions, from computer networks
to smart devices such as the iPad.

We can also provide "total support" including maintenance and upkeep after installation.

60 yearsof experience and trust

We wish to be the "best assistant" for all our customers through ICT.

Sankoshoji Co.,Ltd.
Trading companyof control equipment,
FA parts and electric materials

Server Business

Cloud Business Network Business Equipment Sales

Ma intenanceS upport

Name of organization

NBS CO.,LTD.

Location

NBS Daiichi Building, 113-1 Shirane, Isehara, Kanagawa, Japan

Month and year of

October 1997

establishment

Description of Business

Design and manufacture of connectors and other electrical products; import, design,and manufacture of components for electronic equipment

Name of organization

ASSY ELECTRIC CO.,LTD.

Location

1-11-20 Harada-Minami, Toyonaka City, Osaka, Japan

Month and year of
establishment

Description of Business

May 1986
Design and manufacture of electrical control panelsand electrical wiring work

One-Stop Solutions
From meeting to design and production
We, NBS tailor our services to meet the needs of our customers.
We offer a variety of special connectors from high current connectors
to high voltage connectors and heat resistant connectors.
If you have any queries on special connectors, please contact us
at any time.
We will do our best to support you from one piece to mass production
to meet the customer's requirements.

Name of organization

Taiyo Tsushin Kogyo Co., Ltd.

Location

1-3-15 Nishihonmachi, Nishi-ku, Osaka City, Osaka Pref.

Month and year of
establishment

February 1971

ASSY ELECTRIC when it comes to control.

Electric control design
Please leave it to us for productionand electrical wiring.

Name of organization Hokuestu Denken Co., Ltd. (including subsidiary of Banya)
Location
Month and year of
establishment

Sales of telecommunication construction materials

Description of Business

Sales and repair of telecommunication construction tools and equipment
Electrical and telecommunication construction related works

Description of Business

3-1 Aoyama Shinmachi, Nagaoka City, Niigata Pref. (1-1268-4 Nanyo, Nagaoka City)

March 1977 (Banya: September 2009）
Development of electronic devices, design andmanufacture of control panels, etc.
Commitment to Electronic
Device Development

Telecommunications materials are
Please leave everything to us!
Taiyo Tsushin Kogyo Co., Ltd.

Analog and digital circuit design and fabrication
is our strongest area of expertise.We are committed toachieving high performance, high quality, and low costfor each and every component, and our products, which
are the result of our many years of experience andachievements, are sure to satisfy our customers in termsof quality and cost.
Here we introduce our commitment to development.

Attention to control panel
We also accept bulk orders for systems that include thedesign of everything from control panels for individual
devices to control panels for large lines. We consistently
construct systems that meet the customer's applicationand environment requirements.

61

Company Information

Overseas Subsidiaries
Name of organization
Location

SENSHU ELECTRIC INTERNATIONAL CO., LTD.
90 CW Tower 17th Floor , Room 1704B Ratchadapisek Rd., Huay
Kwang, Huay Kwang, Bangkok 10310.THAILAND
April 1998

Month and year of establishment

Description of Business

Sales of electric wires and other materials for electrical work,
manufacture and sales of equipment, etc.

Name of organization

SHANGHAI SENSHU ELECTRIC INTERNATIONAL CO.,LTD.

Location

Room 1002-1003A,Xin Da Building,No.322,Xian Xia Road,
Chang Ning District,Shanghai,Chaina
January 2004

Month and year of establishment

Description of Business

Sales of various wires and cables, sales of electronic components,
manufacture and sales of processed cable products

SEI Strengths

SHANGHAI SENSHU Strengths

The company has a warehouse near Swanep International Airport, which is the mid-point
between city to factory area.
We have a wide variety of wire types and sizes in stock, including imports from Japan andlocal Thai manufacturers.
We are also equipped with cutting machines and can cut and sell wires.
We can handle a wide variety of harness processing.
(From automotive harnesses to machine tools, semiconductor equipment, etc.)
We have a network with various suppliers for control panel manufacturing and installation work ,Handling a large number of Japanese wires, large inventory in Shanghai, quick delivery, and highquality products.
Import and sales of processed cable products, conveyors, seals, terminals, etc.
We offer the best solutions to meet various needs.
We provide prompt and reliable supply of products and global product procurement capabilities.
In China, there are many Japanese-affiliated automobile plants, and Japanese-affiliated electric
wires are in high demand.

etc., and can provide a wide range of services.
Name of organization
Location
Month and year of establishment

Description of Business

SENSHU ELECTRIC PHILIPPINES CORPORATION
Lot 3-E, American Road, Bgy. Don Jose,Green field Automotive
Park,ECOZONE, Sta. Rosa, Laguna, Philippines
October 2014
Processing and sales of wire and cable harnesses

SEP, a wholly owned subsidiary of Senshu Dengyo, the top electric wire
distribution company in the industry, quickly responds to various userneeds for wire harness processing, mainly FA cables.
For factory production lines such as automobile, liquid crystal, and semiconductor manufacturing
facilities, wire harnesses.
Wire harnesses are indispensable for connecting various types of equipment and opportunities.
SEP provides wire harnesses that meet the requirements.
SEP has established an integrated production system fromprocurement of wires and parts to wire processing, assembly, and inspection.
We also have a complete quality control system to quickly respond to userneeds.

Name of organization
Location
Month and year of establishment

Description of Business

SENSHU ELECTRIC VIETNAM CO., LTD.
24 floor of Block B, Song Da building, Pham Hung Street, My Dinh
1, Nam Tu Liem, Hanoi, Vietnam
October 2019
Sales and purchase of various cables, wires,and materials related to electrical construction, etc.

Name of organization
Location

SEHSHU ELECTRIC TAIWAN CO.,LTD.
8F.-1, No. 26, Sec. 3, Nanjing E. Rd., Zhongshan Dist., Taipei City
104703 , Taiwan (R.O.C.)
January, 2016

Month and year of establishment

Description of Business

Sales and export of wires, cables and electronic components,
sales of other products, etc.

SEHSHU ELECTRIC TAIWAN Strengths
Able to provide processed harness products using competitive local electric wires.
The Taiwanese market is developing telecommunication-related products quickly, and new
products are widely available in the market.
Many Taiwanese wire manufacturers are active OEMs of Japanese manufacturers, and many ofthem have JIS and PSE certifications, making it relatively easy to introduce foreign -made products.
Transportation from Taiwan to Japan is geographically advantageous, taking approximately
3 weeks by sea and 1 week by air.
The supply chain is stable due to the highly effective relationship between Japan and Taiwan.

Name of organization

SENSHU ELECTRIC AMERICA, INC.

Location

35799 Industrial Road, Livonia, MI 48150,U.S.A

Month and year of establishment

Description of BusinessAugust 2021
Sales and purchase of various cables, wires,and materials related to electrical construction, etc.

SEV Strengths

SEA Strengths

SEV has obtained certification from the Vietnamese government(for Kuramo Denko products),
so quality inspections can be omitted when importing through SEV.
SEV will start stocking Kuramo Denko products from October 2020.

We handle a wide variety of electric wires, including those imported from Japan andlocal US manufacturers.
We can handle a wide variety of harness processing.
We have a network with control panel manufacturers.
Flexible response to various needs.
Global deployment of UL standards.

Name of organization
Location
Month and year of establishment

Description of Business

HOKUETSU DENKEN (SHANGHAI) CO., LTD.
No.1, Lane 333 Zhujian Road, MinHang District, Shanghai,
P.R.China
July 2002
Development, production and sales of controllers for looms, design
and production of control panels, etc.

Leave it to us for control panels and control equipment
We provide high quality, low cost production of a wide variety of products in small
quantities.
We can also provide consultation on the design and assembly of various machines
and machinery.

DutiesDesign and manufacture of control panels and control devices for industrial
machinery, NC machine tools, semiconductor manufacturing equipment, etc.,
and machine body wiring
Design and manufacture of electronic devices,
measuring instruments, etc.
Consulting services related to the above
Import, export and sales of electronic andelectrical products for machinery

62

Company Information

About Us
Company name

SENSHU ELECTRIC CO.,LTD.

Established

November 18, 1949

Capital2,575.2 million yen

Number of employees

550

Business Description

Sales of electrical wires and related materials such as equipment wires,
communication wires, power cables, and general-purpose coated wires, as well
as sales of various information equipment, etc.

Stock Status(As of October 31, 2023)

Total number of authorized shares

840,000,000 shares

Total number of shares issued andoutstanding

21,000,000 shares

Number of shareholders

15,013

Trading unit price

100 shares

Stock exchange listing

Tokyo Stock Exchange Prime Market

Stock code

9824

Major shareholder*1. The Company holds
3,303,008 shares of treasury
stock but is excluded from theabove major shareholders.
*2. Shareholding ratio is
calculated excluding treasury
stock.

Investment in the Company
Shareholder Name

Number of shares held
(thousand shares)

Shareholding ratio (%)

Motohide Nishimura

1,589

8.98

BBH for Fidelity Low Priced Stock Fund (Principal All Sector Sub-portfolio)

1,349

7.62

Yoko Nishimura

958

5.41

The Master Trust Bank of Japan, Ltd.

923

5.21

SWCC Corporation

850

4.80

(Trust Account) The Custody Bank of Japan, Ltd.

528

2.98

Kyoko Takahashi

451

2.55

Senshu Electric Employee Shareholding Association

437

2.47

Senshu Sangyo Co.,Ltd.

414

2.34

Akiko Ueshima

315

1.78

Distribution of Shares by Shareholder

Shareholder Distribution by Number of
Shares Heldfinancial
institutions

Less than 100 shares

Securities Firms

More than 100 shares but lessthan 1000 shares

Other Domestic
Corporations
Foreigners
Individuals &OthersMore than 1000 shares but less than
10000 shares

10000 shares or more but lessthan 100000 shares

More than 100000 shares

63

SENSHU ELECTRIC CO.,LTD.

Corporate Planning Office
SENSHU ELECTRIC CO.,LTD.
3-10-12 Tarumi-cho, Suita City, Osaka Pref.
TEL：+81-6-6192-8588